ri/e/ittti/ 


7/p.  ^. 


I'C^f't^ 


Digitized  by  the  Internet  Archive 

in  2007  with  funding  from 

IVIicrosoft  Corporation 


http://www.archive.org/details/bookkeepingbysinOOduffrich 


DUFFS'  COMMON'  SCHOOL  BOOK-KEEPING. 


BOOK-KEEPINa 

BY   SINGLE   AND    DOUBLE   ENTRY, 


A  TEXT-BOOK  FOR  SCHOOLS, 

ADD  A 

MANUAL  OF  PRACTICAL  mSTRUCTION  FOR  BUSINESS  MEN. 


BY 

C.  p.  DUFF,  W.  H.  DUFF,  and  R.  P.  DUFF. 


NEW  YORK: 
HARPER  &  BROTHERS,    PUBLISHERS, 

FRANKLIN    SQUARE. 

188  0. 


3^3 


Entered  according  to  Act  of  Congress,  in  the  year  1877,  by 

HARPER    &    BROTHERS, 

In  the  Office  of  the  Librarian  of  Congress,  at  Washington. 


PREFACE. 


A  TEXT-BOOK  on  Ibook-keeping,  compact  in  form, 
moderate  in  price,  embodying  all  the  most  recent  im- 
provements of  the  connting-room,  and  adapted  to  the  wants 
of  schools  as  well  as  to  the  needs  of  ordinary  business, 
has  long  been  a  desideratum.  The  work  now  given  to  the 
public  seeks  to  meet  this  demand. 

In  order  to  fit  the  book  to  the  purposes  of  school  in- 
struction, no  labor  has  been  spared  to  render  the  principles 
of  the  science  clear  and  simple ;  to  unfold  them  in  a  pro- 
gressive manner  ;  and  to  apply  them  in  new  and  varied 
illustrations.  It  has  been  the  aim  to  produce  a  working 
text-book,  in  which  the  study  shall  be  stripped  of  needless 
difiiculties,  and  the  essentials  of  practical  book-keeping 
set  forth  in  a  way  which,  it  is  hoped,  will  be  found  easy 
both  to  learn  and  to  teach. 

In  addition  to  its  school  use,  this  manual  is  intended 
to  furnish  practical  instruction,  not  only  to  the  wholesale 
merchant,  but  also  to  the  farmer,  the  mechanic,  and  the 
retailer.  To  those  in  the  occupations  and  lines  of  business 
named,  it  is  believed  that  it  will  be  a  recommendation  of 
this  work  that  in  it  only  such  terms  as  are  in  universal  and 
constant  use  among  business  men  are  introduced ;  that 
unreal  and  improbable  transactions  are  avoided ;  and  that 
the  whole  aim  and  purpose  of  the  work  is  to  exemplify 
book-keeping  in  use  as.  wdl  as  in  theory. 

^  438555 


Blank  books,  consisting  of  a  Day  Book,  a  Journal,  a  Ledger, 
and  Auxiliary  Books,  have  been  prepared  expressly  for  this  work. 
They  are  properly  ruled  for  writing  all  the  examples  it  contains  and 
have  the  author's  directions  to  teachers  printed  upon  the  covers. 


BOOK-KEEPING 


SET  L— SmGLE  ENTRY  BOOK-KEEPING. 

ILLUSTRATED  BY  A  SET  OF  BOOKS  SHOWING  THE  METHOD  OF 

ASCERTAINING  PROFITS  AND  OF  CHANGING  SINGLE 

ENTRY  INTO  DOUBLE  ENTRY  BOOKS. 

1.  This  illustration  of  Book-keeping  by  Single  Entry  is  given  solely 
for  the  benefit  of  mechanics,  farmers,  tradesmen,  and  others  who  desire 
only  a  sufficient  knowledge  of  accounts  to  keep  the  Books  of  a  small 
business  in  which  the  more  accurate  and  scientific  Double  Entry  is  not 
required.  The  pupil  who  studies  the  Double  Entry  need  only  give  this 
a  careful  perusal,  as  the  principles  are  very  simple,  and  more  fully  em- 
bodied hereafter  in  the  Double  Entry  sets. 

2.  The  principal  Books  used  are — 

The  Casll  Book,  which  shows  the  receipt  and  payment  of  all 
money. 

The  Day  Book,  which  is  a  complete  record  of  all  transactions 
written  in  the  order  of  their  occurrence,  with  full  particulars  of  each. 

5 


.SET.  I.^.Sm.GIvE.  ENTRY  BOOK-KEEPING. 

The  Ledger,  which  is  used  for  condensing  and  classifying  the 
transactions  recorded  in  the  Day  Book.  It  contains  an  account  for  every 
person  you  buy  from  or  sell  to.  Your  dealings  with  each,  although  ex- 
tending over  a  long  period  of  time,  and  entered  on  many  different  pages 
of  your  Day  Book,  are  here  collected  in  a  small  space  on  one  page, 
under  the  individuals  or  firms  named.  It  thus  enables  you  to  readily 
ascertain  the  amount  due  to  you  from  any  firm  or  individual,  without 
going  over  your  Day  Book  and  sifting  its  contents  for  each  debit  and 
credit. 

3.  Other  auxiliary  Books  are  used,  but  they  vary  in  number  accord- 
ing to  the  requirements  of  the  business.  We  will  not  attempt  a  descrip- 
tion of  them  or  their  uses  here,  as  we  desire  to  make  the  introductory 
set  as  simple  as  possible.  Tlie  various  Books  that  are  bound  together 
here  for  convenience  are,  when  used  in  business,  bound  separately. 


RULES  FOR  DEBITING  AND  CREDITING  ACCOUNTS. 


Ques.  1.  What  is  the  Rule  for 
opening  your  Books  when  you  are 
alone  in  business  ? 

Ques.  2.  What  is  the  Rule  for 
opening  Books  when  two  or  more 
persons  are  partners  ? 

Ques.  3.  What  is  the  Rule  for 
debiting  the  accounts  of  persons  you 
sell  to  ? 

Ques.  J/..  What  is  the  Rule  for 
crediting  the  accounts  of  persons 
you  sell  to  ? 


Ans.  1.  The  Stock  Account^  which 
represents  myself,  must  be  credited 
for  all  that  I  possess,  and  debited 
for  all  that  I  owe. 

Ans.  2.  Each  Partner''s  Account 
must  be  credited  with  what  he  pays 
in  as  capital,  and  debited  with  what 
he  owes  and  draws  out. 

Ans.  3.  When  they  get  into  my 
debt  I  debit  them  for  the  amount. 

Ans.  If..  When  they  get  out  of 
my  debt  I  credit  them  for  what 
they  pay  or  cease  to  owe  me. 


6 


SET  I.— SINGLE  ENTRY  BOOK-KEEPING. 


Ques.  5.  What  is  the  Rule  for 
crediting  the  accounts  of  persons 
you  buy  from  ? 

Ques.  6.  What  is  the  Rule  for 
debiting  the  accounts  of  persons  you 
buy  from  ? 


Ans.  5.  When  I  get  into  their 
debt  I  credit  them. 

Ans.  6.  When  I  get  out  of  their 
debt  I  debit  them  for  what  I  pay 
or  cease  to  owe  them.i 


1.  When  a  discount  or  deduction  is  made  by  another  for  you,  or  by 
you  for  another,  such  discount  must  be  included  in  the  debit  or  credit  on 
your  books,  just  the  same  as  if  it  were  cash.  If  you  allow  a  discount, 
the  person  who  pays  gets  credit  with  what  "  he  ceases  to  owe,"  which  is 
the  amount  of  the  cash  paid,  and  the  discount  allowed.  If  a  person 
allows  you  a  discount,  you  must,  by  the  rule,  debit  him  with  what  you 
"  cease  to  owe  " — which  in  this  case  is  the  amount  of  the  cash  paid,  and 
the  discount  allowed.  See  Day  Book  entry  Dec.  1,  and  questions  1  and 
2,  p.  11,  where  you  cease  to  owe,  and  debit  Havemeyer  &  Co.  with  $300, 
when  the  amount  paid  was  only  $294. 


DIRECTIONS  TO  TEACHERS. 

1.  After  the  student  has  committed  to  memory  the  foregoing  rules, 
let  him  write  up  the  Day  Book  of  this  set  for  the  month  of  October.  Its 
form  is  so  simple,  and  each  transaction  is  recorded  in  such  plain  terms, 
that  only  a  few  directions  and  explanations  are  required : 

The  figures  in  the  left-hand  marginal  column,  which  is  headed  "  Ledger 
Folios,"  must  not  be  copied  with  the  rest  of  the  Day  Book,  but  are  to  be 
inserted  afterwards,  when  the  contents  of  this  Book  are  posted  or  trans- 
ferred to  the  Ledger.  For  instance,  the  first  entry  of  the  Day  Book  is 
taken  to  the  credit  side  of  Stock  Account  in  the  Ledger ;  then  to  show 
on  what  page  of  the  Ledger  the  Day  Beok  entry  has  been  posted,  the 
folio  or  page  of  the  Ledger  that  the  "  Stock  Account "  is  on  must  be 


SET   I.— SINGLE  ENTKY   BOOK-KEEPING. 

entered  in  the  column  referred  to.  This  post  mark,  or  figure,  as  it  is 
often  termed,  shows  what  entries  have  been  posted,  and  is  also  a  direct 
reference  to  the  Ledger  page  in  checking. 

2.  In  posting,  require  the  student  to  enter  first  the  amount,  as  it  is  of 
the  utmost  importance  to  have  the  dollars  and  cents  correctly  transferred ; 
second,  the  date ;  third,  the  explanation  ;  fourth  and  last,  the  Day  Book 
page.  The  student  must  then  insert  his  post  mark  or  Ledger  page  in  the 
marginal  column  of  the  Day  Book,  headed  "Ledger  Folios." 

3.  When  the  October  transactions  are  all  posted,  the  student  must  com- 
pare the  items  in  the  Day  Book  with  his  entries  in  the  Ledger,  to  see  that 
he  has  omitted  nothing  in  posting,  and  made  no  mistakes  in  anything 
transferred.  As  each  entry  is  examined  and  found  correct,  he  must  check 
mark  it  thus  y'  in  lead-pencil,  on  the  folio  column  of  the  Day  Book,  and 
in  the  Ledger  thus  .  on  the  left  of  the  dollar  and  cent  columns,  i.  e.,  on 
the  column  which  divides  the  Day  Book  folios  and  dollar  column. 

4.  After  posting  the  October  transactions,  let  the  student  go  over  the 
business  of  each  month  in  the  same  manner,  until  all  are  posted  and 
checked.  We  prefer  to  have  the  student  write  up,  post,  and  check  one 
month  at  a  time,  as  lie  often  gets  a  wrong  impression  if  he  only  posts 
once  in  each  three  months'  business. 


NEW  YORK,  October  1,  1§74:. 


2  I  have  this  day  commenced  business  with  a  capital  of  cash 
in  hand 


3  Wilson  Brothers,  Cr. 
For  Mdse,  per  invoice, 


Chas.  E.  Hill  &  Co.,  Cr. 
For  Mdse.  per  invoice. 


Arbuckles  &  Co.,  Cr. 
For  Mdse.  per  invoice, 


4Wm.  McKown,  Dr. 
For  2  lbs.  Tea,  $1.50 ;  1  lb.  Pepper,  50c. 
"    1  bbl.  Flour, 


$3.00 
8.00 


Samuel  Mathews,  Dr. 

For  10  lbs.  Sugar,  $1.00 ;  1  Ham,  $3.50;  3  lbs.  Candles,  40c.  - 

======      lO       ===== 


Fairbanks,  Morse  &  Co.,  Cr. 

For  1  Platform  Scale, $75.00 

"    1  Counter       «  25.00 


15 


D.  A.  Sweeney,  Dr. 

For  amount  of  Groceries  furnished  Jos.  Eckly  on  his  order,  - 

=============      25      


Fairbanks,  Morse  &  Co.,  Dr. 

For  my  order  on  Park  Bro.  &  Co., 

_____ _  n 

Park  Bro.  &  Co.,  Cr. 

For  my  order  on  them,      ... 


^  What  are  the  fij^ures  in  the  left-hand  column,  and  when  are  they  to  be 
inserted  ?  Ans.  Ledger  pages,  and  they  are  to  be  inserted  when  the 
amount  is  posted,  and  not  before. 

*  What  rule  applies  to  this  entry  ?    Ans.  Rule  1. 

3  Why  credit  Wilson  Bros.  ?    Am.  Rule  5  requires  me  to  do  80. 

*  Why  debit  McKovvu  ?    Am.  Ue  gels  into  my  debt.    Rule  3. 

9 


NEW  YOKK,  November  1,  1874. 

1  Wilson  Brothers,  Dr. 

For  Cash  paid  them  in  full, 

.  tr         . 

Chas.  E.  Hill  &  Co.,  Dr. 

For  Cash  paid  them  in  full, 

//         . . 

Arbuckles  &  Co.,  Dr. 

For  Cash  paid  them  in  full, 

=====       5        ===== 
T,  G.  Stewart  &  Co.,  Cr. 
For  100  bbls.  Flour  per  invoice, 

//        . 

Havemeyer  &  Co.,  Cr. 

For  10  bbls.  Syrup  per  invoice, 

, //        , 

2  W.  W.  Swain  (New  Orleans),  Cr. 

For  15  bbls.  Molasses  per  invoice, 

Dr. 
"    Cash  paid  his  draft  on  me  at  sight, 

-  15       ===== 
Wm.  McKown,  Dr. 

For  1  box  Raisins,  $3.00  ;  2  Brushes,  |1.50  -     -    -    -    $4.50 
"    20  lbs.  Rice,  $1.80  ;  2  lbs.  Tea,  $1.20      ...    -      3.00 

n  

H.  D.  Beerhman,  Dr. 

For  1  bbl.  Molasses, 45  galls. ,  @  90c. 

John  Craig,  Dr. 

For  5  bbls.  Molasses, 225  galls.,  @  90c. 

==^=      25      —  — 

T.  G.  Stewart  &  Co.,  Dr. 

For  my  note  at  80  days  in  settlement  of  their  acc't,  .     -    -    . 

'  Why  debit  Wilson  Bros.  ?  Ans.  By  Eule  6,'  I  debit  them  for  what  I 
pay,  or  cease  to  owe  them. 

'^  It  is  not  necessary  to  carry  this  credit  to  the  Ledger,  as  the  purchase 
was  paid  for  on  the  same  day.    An  entry  like  the  above  is  suflicieut. 

10 


NEW  YORK,  December  1,  1874. 

1  Havemeyer  &  Co.,  Dr. 

2  For  Discount  allowed  on  bill  of  Syrup, $6.00 

"     Casli  in  full, • 294.00 

//        

\Vm.  McKown,  Cr. 

For  C'asli  on  account, 

_^ //        

3  Samuel  Mathews,  Cr, 

For  Casli  in  full, 

======        5        === 

James  Moon,  Dr. 

For  25  bbls.  Flour, @  $7.50 

5^ .        //        . 

J.  R.  Hanna,  Dr. 

For  50  bbls.  Flour, -    -    @  $7.50 

rz=========        lO  

James  Moon,  Cr. 

For  Ms  note  at  30  days  in  settlement  of  acc't, 

=====      20  - 

H.  Todd,  Dr. 

For  20  bbls.  Flour, @  $7.50    $150.00 

Cr. 

By  Cash  on  account, 50.00 

^ .  /r 

Win.  Byrne,  clerk,  Dr. 

For  Cash  on  acc't  of  his  services, 

^  31      ====== 

D.  A.  Sweeney,  Cr. 

For  bill  of  repairs  to  warehouse, 

. — - —        /'        ^ 

Wm.  Byrne,  Cr. 

For  1  month's  services  as  clerk,     ---------- 

^  Why  debit  Uavemeyer  &  Co.  ?  Ans.  Because  Eule  6  requires  me  to 
debit  those  I  pay,  or  cease  to  owe. 

''■  Why  is  the  discount  charged  to  them  ?  Ans.  Because,  when  they 
agree  to  take  a  sum  less  than  tbe  amount  I  owe  them,  I  get  out  of  their 
debt  for  the  whole  amount. 

3  When  an  account  is  paid  in  full,  and  the  payment  is  posted,  it  must  be 
"ruled  off"  on  the  Ledger. 

11 


statement  li^xliibiting  my  Gain,  Dec.  31,  1874. 


Amount  due  me  by  Wm.  McKown,  -  -  - 
"  "    to  D.  A.  Sweeney, 

«  to  Park  Bro.  &  Co.,  -  -  -  - 
"  "    me  by  H.  D.  Beerbman,  -    •-    - 

"  "      "    by  John  Craig, 

"  "     "    by  J.  R.  Hanna,     -    -    -    - 

"      "    by  H.Todd, 

"  "    to  Wm.  Byrne, 

"  of  Cash  on  band  per  Cash  Book,  - 
"  of  Mdse.  on  hand  in  store,  -  -  - 
"  due  me  on  notes  (Bills  Receivable), 
"         I  owe  on  my  notes  (Bills  Payable), 

My  total  Effects  amount  to 

"      "     Liabilities  to  be  deducted  are    -    - 

Amount  of  my  Capital  at  date, 

"        of  my  Capital  Oct.  1,  1874,    -    -    - 

"        of  my  Gain  in  3  mos.  business,  -    - 


EFFECTS. 


50 


40  50 
302  50 
375 


100 


2784  90 

254810 

187  50 


G246 
831 


5415 
5000 


415 


LIABILITIES. 


16 
100 


40 


675 


1.  To  ascertain  the  gain  or  loss  by  Single  Entry,  follow  the  above 
form,  and  take  from  your  books  a  list  of  the  debts  that  you  are  owing 
various  firms  and  individuals,  and  a  list  of  the  debts  due  you  from  firms 
and  individuals.  Add  to  this  the  amount  of  Cash,  Mdse.,  and  Bills 
Receivable  on  hand,  and  the  amount  you  owe  on  your  notes.  In  this 
way  you  obtain  a  complete  list  of  what  you  are  worth  (Effects)  and  of 
what  you  owe  (Liabilities).  Deduct  what  you  owe  from  what  you  are 
worth,  and  you  have  your  net  worth,  or  net  capital,  as  it  is  termed. 
You  will  find  above  that  on  Oct.  1,  your  net  capital  was  $5000,  and 
on  Dec.  31,  it  was  $5415 — an  increase  of  $415,  which  is  the  gain  on  the 
business,  and  must  be  carried  to  the  credit  of  your  Stock  account  in  the 
Ledger. 

2.  In  business,  experts  omit  the  explanatory  words  wo  have  added  in 
making  up  a  list  of  Effects  and  Liabilities.  Business  men  never  complain 
of  a  book-keeper  for  making  too  clear  an  exhibit  of  their  business, 

12 


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Dr. 

{m 

at  I  owe)       STOCK  (Representing  i 

nysclf)  ACCOUNT  (mat  I  possess) 

Cr, 

1874. 
Dec. 

31 

Balance  (net  cap.)/. 

5 

5415 
5415 

— 

1874. 

Oct. 

Dec. 

Dec. 

1 
31 

31 

For  Cash,     -     -     - 
"    Net  Profits,     - 

1 
4 

5000 
415 

5415 
5415 

Bal.  bro't  down,    - 

1.  Where  do  yon  ^et  the  credit  of  $415  ? 

2.  What  does  the  balance  of  $5415  roprc- 
eent? 

3.  When  is  this  account  closed  ? 


1.  From  the  statement  of  Gain,  D.  B,,  p.  4. 

2.  My  net  capital.     See  statement,  D.  B., 
p.  4. 

3.  See  T  i,  p.  18. 


(mat  1  pay  them.) 


WILSON  BROTHERS. 


(What  I  owe  them.) 


1874. 

Nov.  1  For  Cash,     - 


1874. 
2     500        Oct.    1  ForMdse.     - 


1     500 


1.  What  Rules  guide  you  in  making  entries        1.  Rules  5  and  6. 
for  Wilson  Bros,  account  ? 

2.  When  do  you  credit  their  account  ?  2.  When  I  "buy  from  Wilson  Bros. 

3.  When  do  you  debit  it  ?  3.  When  I  pay  or  cease  to  owe  them  the 

amount  they  are  credited  with. 


(What  I  pay  them.) 


CHAS.  E.  HLLL  &  CO. 


(What  I  owe  them.) 


1874. 

Nov.  1  For  Cash, 


2     150 


1874. 
Oct.    1 


For  Mdse. 


150 


1.  Why  close  Chas.  E.  Hill  &  Co.'s  acc't  ? 


1.  I  have  paid  the  amount  due  them,  and 
draw  closing  lines  to  separate  what  is  paid 
from  future  transactions. 


ARBUCKLES  &  CO. 


1874.1 

Nov.  1  For  Cash, 


875 


1874. 

Oct.    1  ForMdse. 


Note.— The  pupil  must  be  able  to  answer  the  questions  under  different  accounts  before  he 
attempts  the  work  of  closing,  and  should  have  his  manuscript  Ledger  open  before  him  when 
doing  BO. 

14 


Dr,     (What  he  owes  me.) 


WM.  McKOWI^. 


(Wliat  he  pays  me.)     Or 


1874. 

Oct. 

Nov. 


Dec. 


31 


For  Mdse. 
"     do. 


Bal.  bro't  down. 


11874. 

1 

10 

Dec. 

1 

2 

7 
17 

7 

50 
50 

50 

<( 

31 

For  Cash, 

Balance.  • 


/. 


3 

10 

5 

7 

17 

1.  Is  McKown's  acc't  the  same  as  the  three        1.  No ;  this  is  an  acc't  with  a  person  I  am 
preceding  ones  ?  selling  to.    Eefer  to  Wilson  Bros,  acc't. 


(What  he  owes  me.) 


SAMUEL  MATHEWS. 


(What  he  pays  me,) 


1874. 

Oct.    5  For  Mdse. 


1874. 
3!90l  Dec.    1  For  Cash, 


-    3 


3  90 


1.  What  Enles  apply  to  Mathews  acc't  ? 

2.  Why  is  it  closed  ? 


1.  The  8d  and  4th. 

2.  To  show  the  settlement  and  separate  what 
is  paid  from  future  transactions. 


FAIRBANKS,  MORSE  &  CO. 


1874. 
Oct. 


25 


For  my  order,  - 


100 


1874. 
Oct. 


10 


For  2  pr.  Scales, 


100 


I>.  A.  SWEEISTEY. 


1874, 

Oct. 

Dec. 


For  order  on  me,  - 
Balance,  -    -    -   /. 


41 


1874. 
Dec. 


Dec. 


31 


31 


For  bill  of  Repairs, 


Bal.  bro't  down. 


41 


PARK  BRO.  &  CO. 


1874. 
Dec. 


31 


Balance, 


/ 


100 


1874. 
Oct. 

Dec. 


For  my  order,  -    - 


Bal.  bro't  down,    - 


100 


100 


1.  Why  is  the  "-Balance  "  in  italics  ? 


1.  To  show  that  it  must  be  written  in  red 
Ink  when  Inserted  for  the  purpose  of  closing 
an  acc't. 

2.  Is  it  to  he  written  in  red  ink  when  It  is        2.  No ;  I  bring  it  down  In  black  mk. 
bro't  down  to  re-open  an  acc't? 

15 


Dr. 

T.  G. 

STEWART  &  CO. 

Or. 

1874. 
Nov. 

25 

For  my  note,    -    - 

3 

675 

1874. 
Nov. 

5 

For  Mdse. 

2 

675 

— 

(What  I  pay  or  cease  to  owe.)     HAVEMEYER  &  CO.  - 

(^'hat  I  owe  them.) 

1874. 
Dec. 


For  Discount, 
"    Casli.    - 


3 

6 
294 

300 

— 

11874. 

jNov. 

5 

For  Mdse. 


300 


300 


1,  Why  do  you  charge  discount  to  Have-        1.  Because  they  allow  this  disc't  for  prompt 
meyer  «fe  Co.  ?  payment,  and  as  I  cease  to  owe  them,  I  debit 

them  according  to  Kule  6. 


H 

.  D.  BEERHMAIS^. 

1874. 
Nov. 

15 
31 

For  Mdse.    -    -    - 

2 

40 
40 

50 
5"0 

1874. 
Dec. 

31 

Balance, 

-   / 

5 

40 

50 

Dec. 

Bal.  bro't  down,    - 

• 

JOHN  CKAIG. 


1874 
Nov. 

Dec. 


20  For  Mdse.    -    - 
31  Bal.  bro't  down, 


202 


202 


1874. 
Dec. 


31 


Balance, 


/.   5 


202 


50 


Note.  We  bring  balances  down  under  date  Dec.  31,  the  day  the  hoolis  are  closed.    Many  pre- 
fer to  bring  them  down  on  the  next  date,  which  in  this  case  would  be  Jan.  1. 

JAMES  MOON. 


1874. 

Dec.    5  For  Mdse. 


1874. 
1871501  Dec.  lOlFor  note  at  30  ds.  -     3     187  50 


J.  R.-HANNA. 


1874. 
Dec. 

Dec. 


For  50  bbls.  Flour, 


Bal.  bro't  down. 


375 


375 


1874. 
Dec. 


31 


Balance, 


/■ 


375 


1.  Why  is  the   closing  or  balance   entry         1.  To  show  the  entry  is  taken  to  or  from 
marked  fol.  —  ?  some  acc't  in  the  Ledger— not  from  the  D.  B. 

2.  Isit  ofany  ftirtheruse?  2.  Yes;   it  enables  me  to  distinguish  my 

permanent  debits  and  credits  at  a  glance. 

16 


Dr. 

H. 

TODD. 

Cr. 

1874. 
Dec. 

30 
31 

ForMdse.    -    -    - 

3 

100 
100 

= 

1874. 
Dec. 

31 

Balance,      -    -    /. 

5 

100 

Dec. 

Bal.  bro't  down,    - 

WM.  BYRNE. 

1874. 
Dec. 

20 

31 

For  Casli,    -    -    - 

Balance,-    -    -   f. 

3 
5 

10 
40 

50 

— 

1874. 
Dec. 

Dec. 

31 
31 

For  1  mo.  salary,  - 

3 

50 

50 
40 

Bal.  bro't  down,   - 

CASH  ACCOUNT. 

1874. 
Dec. 

31 
31 

For  am't  on  hand, 

4 

2784 
2784 

90 
90 

1874. 
Dec. 

31 

Balance,      -    -   f. 

5 

2784 

90 

Dec. 

Bal.  bro't  down,    - 

See  note  2,  Ledger,  fol. 
5. 

MERCHANDISE  ACCOUNT. 

1874. 
Dec. 

31 
31 

For  am't  on  hand. 

4 

2548 
2548 

10 
10 

1874. 
Dec. 

31 

Balance,      -    -   f. 

5 

2548 

10 

Dec. 

Bal.  bro't  down,    - 

BILLS  RECEIVABLE. 

1874. 
Dec. 

31 
31 

For  notes  on  hand. 

4 

187 
187 

50 
50 

1874. 
Dec. 

31 

Balance,      -    -   /• 

5 

187  50 

Dec. 

Bal.  bro't  down,    - 

BILLS  PAYABLE. 

1874. 
Dec. 

31 

Balance,      -    -    /• 

5 

675 

11874. 
Dec. 

Dec. 

31 
31 

For  my  notes  un- 
paid,   -    -    -     - 

4 

675 
675 

Bal.  bro't  down,    - 

1.  Where  do  you  get  the  items  for  the  last         1.  From  the  statement  on  Day  Book,  p.  4. 
four  accounts  ?  2.  By  counting  the  cash,  taking  an  inven- 

2.  How  are  they  ascertained  ?  tory  of  Mdse.  on  hand,  making  up  a  list  of  the 

notes  on  hand  and  of  the  notes  I  owe. 


B 


17 


5 

Dr. 


(Effects) 


BALANCE  ACCOUNT. 


(Liabilities)     Cv 


1874 
Dec, 


Wm.  McKown  owes  me,/ 
H.  D.  Beerhman  " 
Jno.  Craig  " 

J.  R.  Hanna  " 

H.  Todd 

Cash  on  hand,  -  - 
Mdse.  on  "  -  - 
Bills  Rec.  on  hand, 


Net  cap.,  5415 


1 

1 

1874. 

2 

7'50 

Dec. 

31 

3 

40  50 
202  50 

8 

375! 

" 

" 

100 ! 

u 

4 

27&4  90 
2548  10 

u 

187  50 

6246 

i| 

Due  D.  A.  Sweeney,  -  / 
Park  Bros.  &  Co.  - 
Wm.  Byrne,  -  -  - 
on  my  Notes, ... 

831. 

on  Stock  for  my  net 
Capital,   -    -    -    - 


2 

16 

ii 

100 

4 

40 

" 

675 

1 

5415 

6246 

1.  This  account  is  a  condensed  statement  of  your  affairs.  It  is  a  complete 
inventory  of  your  Effects  and  Liabilities  at  the  time  of  closing  your  books,  and 
is  placed  on  the  Ledger  for  reference  hereafter.  It  is  made  up  by  closing  into 
it  every  account  on  the  Ledger  that  shows  debts  due  to  you  or  due  from  you 
to  others.  The  Stock  account,  which  represents  yourself,  is  the  last  account 
closed.    The  Rule  for  closing  is,  that 

All  debits  are  Effects  and  all  credits  Liabilities. 

When  the  debit  side  of  an  account  is  the  larger,  it  represents  or  shows  a 
part  of  your  effects,  and  the  amount  is  placed  on  the  Br.  side  of  Balance,  and 
when  the  credit  side  of  an  account  is  the  larger,  it  shows  a  part  of  your  liabili- 
ties, and  is  taken  to  the  Or.  side  of  Balance.  Examine  the  accounts  as  we  have 
closed  them.  When  all  the  accounts,  except  Stock,  have  been  closed  into 
Balance  acc't,  add  both  sides,  and  place  the  footings  in  pencil  to  the  left 
of  the  money  columns,  in  the  margin,  as  shown  above  ;  then  subtract  the 
less  from  the  greater  side,  and  the  difference  is  the  net  amount  you  pos- 
sess, or  the  sum  that  remains  after  deducting  what  you  owe.  The  Stock 
acc't  shows  what  the  concern  owes  you  for  capital  invested  and  profits  earned, 
and  if  your  work  is  correct,  this  amount  will  be  the  same  as  the  difference 
between  the  two  sides  of  your  Balance  acc't.  Thus,  your  Stock  acc't  on 
fol.  1  shows  that  the  concern  owes  you  for  capital  and  profits  to  date  $5415, 
and  the  Balance  acc't  shows  that  after  your  debts  are  paid,  the  concern  is  able 
to  pay  you  $5415.  The  Stock  acc't  is  then  closed  into  Balance,  and  closes  it, 
as  shown  above. 

2.  We  have  re-opened  Cash,  Mdse.,  Bills  Receivable,  and  Bills  Payable  to 
show  that  our  method  of  closing  a  Single  Entry  Ledger  admits  of  re-opening 
the  same  Ledger  by  Double  Entry.  This  is  a  decided  improvement  on  the 
old  plan  of  changing  from  Single  to  Double  Entry,  which  is  to  open  entirely 
new  books. 

18 


MERCANTILE  TERMS,  SIGNS,  AND  ABBREVIATIONS 

IN    GENERAL   USE. 


Acc't  Current. — A  statement  of  a 
running  account  with  or  without 
interest. 

Acc't  Sales. — A  statement  showing 
sales  of  goods  made  for  others. 

Am't. — Amount. 

Acc't  or  %. — Account. 

Acceptance. — A  draft  with  the 
drawee's  formal  promise  to  pay  writ- 
ten across  its  face. 

Bal. — Balance. 
Bbls.  or  Brls.— Barrels. 
Bills  Pay.— Bills  Payable. 
Bills  Bee. — Bills  Receivable. 

B.  B.— BiU  Book. 
Bo't.— Bought. 
Bro't. — Brought. 

Check. — An  order  for  money  drawn 
on  a  bank  or  banker. 

C.  B.— Cash  Book. 

Co. — Company  or  County. 

Cr. — Credit  or  Creditor. 

Closing    an    acc't. —  To   make    it 

even. 
Closing    lines.  —  Lines    that    are 

drawn  in  acc'ts  to  separate  old  from 

new  transactions. 
Counter  Entry.— An  entry  made  to 

balance  one  made  on  the  opposite 

side  of  an  account. 
Consignment.— A  shipment  of  goods 

to  another  for  management  or  sale. 
Cartg.— Cartage. 


C/o.— Care  of ;  thus,  C/o  P.  Duff  & 
Sons. 

D.  B.— Day  Book. 

Dr. — Debtor  or  Debit. 

Do. — Ditto — the  same. 

D'ft.— Draft. 

Dray. — Drayage. 

Draft. — An  order  for  money  drawn 
on  a  person  at  a  distance. 

Disc't. — Discount. 

Discount.— A  deduction  from  a  bill 
or  an  account  for  prompt  payment, 
or  the  amount  deducted  by  a  bank 
for  loans  on  notes  or  drafts. 

D's.— Days. 

Doz. — Dozen. 

Days  of  grace. — Three  days'  time 
allowed  by  law  for  the  payment  of 
notes  or  acceptances  after  the  ex- 
piration of  the  running  time. 

Dividend. — The  division  of  profits. 

Drawer. — The  maker  of  a  draft. 

Drawee. — The  person  on  whom  it  is 
drawn. 

Due  Bill. — A  written  acknowledg- 
ment of  a  debt  payable  on  or  after 
demand. 

E.  E. — Errors  excepted. 

E.  &  O.  E. — Errors  and  omissions 
excepted. 

Exch. — Exchange. 

Endorse.  —  To  write  your  name 
across  the  back  of  an  obligation  on 
paper,  thereby  guaranteeing  its  pay- 


19 


MERCANTILE  TERMS,  SIGNS,  AND  ABBREVIATIONS. 


ment  to  subsequent  holders  or  en- 
dorsers. 
Ent.— Entered, 

Full    extend.— To    extend   figures 

into  the  outer  money  column. 
Footing  an  acc't.— To  add  it. 
Footing  lines. — Lines  drawn  across 

money  columns  before  adding  them. 
Fol.  or  F.— Folio. 
Folios. — The  pages  of  the  Ledger, 

so  termed  because  they  are  divided 

in  two  parts — Dr.  and  Cr. 
Fr't.— Freight. 

Galls,  or  G.— Gallons. 

Hhd. — Hogshead. 

Honor  a  draft.— To  accept  it. 

Hf.— Half. 

I.  B. — Invoice  Book. 

Inventory.  — A   list    of    goods    on 

hand. 
Insolvency. — To  owe  more  than  you 

possess. 
Inv. — Invoice. 

Inst.— Instant — the  present  month. 
Int. — Interest. 


Long  extend. 
Lbs. — Pounds. 


—See  "  Full  extend. 
See  Signs,  p.  21. 


Mos. — Months. 
Mf g .  — Manufacturing. 
Mdse. — Merchandise. 
Maturity.— The  day  on  which  a  note 
or  acc't  is  due  or  payable. 


K"/A. — New  account. 

N/P. — Net  proceeds. 

N/G.— Net  gain. 

N/C  OT  Net  Cap.— Net  Capital,  or 

what  you  possess    after  deducting 

the  debts  you  owe. 
No. — Number.    See  Signs,  p.  21. 

Order. — Written  authority  for  the 
delivery  of  goods  or  money. 

P'd.— Paid. 

Pay  m' t . —Payment. 

Ps.  or  Pes,— Pieces. 

Prox. — Proximo — ^next  month. 

Prem, — Premium — an  advance  on  the 
face  or  par  value  of  anything. 

Par. — The  face  of  a  note  or  draft ; 
the  original  value  set  forth  on  its 
face. 

Policy. — The  contract  with  an  insur- 
ance company. 

Protest.  — The  written  and  formal 
proof  of  demand  and  notice  required 
by  law  of  the  dishonoring  of  notes, 
drafts,  or  checks. 

P.  or  Pt.— Pint. 

P.  M,  O. — Post-office  money  order. 

Q.  or  Qt. — Quart. 

Rec'd. — Received. 

Ret'd.— Returned. 

Renewal  of  a  note. — Extending  its 
time  of  payment  by  taking  a  new 
note. 

Receipt.  —  A  written  acknowledg- 
ment of  the  receipt  of  money  or  any- 
thing else. 


20 


MERCANTILE  TEKMS,  SIG:NS,  AND  ABBREVIATIONS. 


Solvent. — Possessing  more  tlian  you 

owe. 
Short  extend. — To  extend  figures 

into  tLe  inner  money  column,  or  to 

the  left  of  a  money  column,  if  there 

be  but  one. 
S.  B.— Sales  Book. 
Signature. — Your  name  written  by 

yourself. 
Sgt.— Sight. 
Sks.— Sacks. 
Stg.— Sterling. 
Sq. — Square. 
Signs : 

^— Per  cent. ;  thus,  10%. 

@— At;  thus,  @$1.50. 

8110 — Eight  by  ten  inches. 

12ll{. — Twelve  quarters  of  a  yard. 

£— Pounds  sterling. 


$— Dollars. 

^— Cents. 

It— Preceding   a  figure  (thus,  %  10) 

means  number. 
S — After  a  figure  (thus,  IDS),  means 

pounds. 
//  —Ditto  marks.     See  "  Do." 
i,^/^i/7^— Twelfth  month  (Dec.)  and 

thirty-first  day,  1874. 

Tc— Tierce. 

Tare. — A  deduction  or  allowance  for 

weight  of  packages. 

Ult. — Ultimo^last  month. 
Via. — By  way  of. 
Yds.— Yards. 


21 


SET  IL— DOUBLE  ENTRY  BOOK-KEEPING. 

INTRODUCTORY. 

Having  illustrated  Single  Entry,  we  now  propose  to  instruct  the  pupil 
in  the  more  difficult,  but  complete  Double  Entry. 

The  chief  points  of  difference  are  these  :  Single  Entry  pertains  only 
to  the  keeping  of  your  accounts  with  individuals  or  firms ;  Double  Entry 
shows  your  accounts  with  persons,  and  also  your  expenses  and  losses,  your 
gains  and  their  source.  In  addition  to  this,  the  main  feature  of  every 
debit  having  its  corresponding  credit,  creates  a  safeguard  against  error. 

THE  VARIOUS  BOOKS  AND  THEIR  USE. 

THE   DAY  BOOK. 

1.  This  book  requires  but  little  explanation.  Although  it  is  an  impor- 
tant book,  because,  when  used  without  auxiliaries,  all  entries  originate  in  it, 
yet  its  form  is  much  a  matter  of  taste.  It  is  necessary  that  the  various 
transactions  that  occur  be  at  once  entered  upon  it  in  their  regular  order, 
with  the  particulars  pertaining  to  each.  In  this  book  we  have  stated  the 
transactions  at  length  to  make  everything  clear  to  the  learner;  but  in 
business  the  entries  may  be  materially  shortened,  and  still  be  complete. 
This  will  answer  where  all  who  have  access  to  the  books  are  experts,  but 
the  many  omissions  and  abbreviations,  easily  understood  by  them,  would 
bewilder  a  student  if  given  here.  When  an  error  is  made  in  this  book, 
do  not  attempt  to  erase  it,  but  run  your  pen  through  it,  and  make  a  cor- 
rected entry  elsewhere.  By  a  marginal  note,  such  as,  "  See  entry  below," 
or  "  See  entry,  p.  — ,"  you  may  refer  to  an  entry  that  is  made  in  the 
place  of  one  that  has  been  cancelled.  The  Day  Book  is  your  best  witness 
when  compelled  to  appeal  to  the  courts  for  the  collection  of  accounts, 
and  erasures  create  a  doubt  as  to  the  accuracy  of  its  records. 

2.  Sometimes  the  Day  Book  is  dispensed  with,  and  in  its  place  a 
Sales  Book,  Invoice  Book,  Cash  Book,  and  Bill  Book  are  kept,  as  we 
explain  and  illustrate  in  a  subsequent  set. 

22 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 

JOURNAL. 

1.  The  Journal  is  a  book  in  wliicli  the  Day  Book  transactions  are 
condensed  and  arranged  in  a  form  convenient  for  posting  or  transferring 
to  the  Ledger  with  accuracy.  Where  a  Day  Book  contains  items  affect- 
ing several  accounts  on  the  Ledger,  it  would  be  diflScult  to  post  accu- 
rately from  it  to  the  Ledger.  By  the  use  of  the  Journal  this  difficulty  is 
obviated,  for  in  it  we  give  the  name  of  the  account  that  is  to  be  debited, 
and  place  opposite  to  it  the  amount ;  then  the  credit,  and  opposite  to  it 
the  amount.  If  there  be  a  number  of  debits  and  credits  arising  from  one 
transaction,  we  give  the  name  of  each  account  that  is  to  be  debited  and 
credited,  with  the  respective  amounts  opposite. 

2.  To  illustrate  the  use  of-  the  Journal,  we  take  the  following  Day 
Book  Entry : 

Bo't  of  James  Brown,  for  Cash, 
10  bbls.  Flour, @  |7.50    $75. 

The  Journal  of  this  transaction  would  be — 


Mdse.  account,  Dr. |^^ 

To  Cash  account, 


75 


3.  It  is  essential  that  the  Day  Book  should  give  particulars  of  every 
transaction ;  and  to  prevent  omissions  and  errors  in  posting  to  the  Ledger, 
it  is  equally  important  to  get  rid  of  these  particulars.  This  is  accom- 
plished by  the  use  of  the  Journal,  which  divests  the  Day  Book  entry  of 
everything  but  the  name  of  the  account  to  be  debited  and  the  amount, 
and  the  name  of  the  account  to  be  credited  and  the  amount. 

4.  The  Journal  is  ruled  with  double  money  columns — the  one  on  the 
left  being  for  amounts  to  be  posted  to  the  debit  side  of  their  respective 
accounts  on  the  Ledger,  and  the  one  on  the  right  for  amounts  to  be  posted 
to  the  credit  side  of  their  respective  accounts.  The  amount  to  be  deb- 
ited or  credited  should  be  the  first  thing  posted  in  the  Ledger  account 
The  debits  and  credits  of  each  Journal  entry  must  be  equal  in  amount. 

23 


SET  II.— DOUBLE  ENTKY  BOOK-KEEPINGL 

THE   LEDGER. 

1.  Tlie  numerous  transactions  which  fill  many  pages  of  the  Day  Book 
are  condensed  into  a  small  space  in  the  Ledger,  so  that  the  condition  of 
an  account  may  be  seen  at  a  glance.  The  cost  of  all  goods  you  buy  is 
gathered  on  the  Dr.  side  of  the  Mdse.  acc't,  and  the  amount  of  sales  on 
the  CV*.  side.  If  all  the  goods  are  sold,  the  difference  between  the  cost 
and  sales  represents  your  gain  or  loss  on  Mdse.  In  the  Cash  acc't  you 
gather  on  one  side  all  the  money  received,  and  on  the  other,  all  the 
money  paid  out,  and  the  difference  between  these  amounts  is  the  balance 
on  hand.  In  the  Bills  Rec.  acc't  you  gather  all  notes  received  on  one 
side,  and  on  the  other,  all  notes  that  are  paid  and  handed  back  to  those 
who  issued  them.  The  difference  between  the  notes  received  and  those 
paid  is  the  amount  of  notes  you  hold  against  others. 

2.  Accompanying  the  Ledger  is  a  small  book  called  the  Index,  trimmed 
so  as  to  display  the  letters  of  the  alphabet,  one  of  which  is  pasted  on  each 
page.  In  it  you  write  the  name  of  an  account  and  its  page  before  it  is 
opened.  Thus,  if  you  are  to  open  an  account  with  H.  K.  Thurber  h  Co. 
on  p.  5  of  the  Ledger,  you  first  turn  to  the  page  of  this  book  on  which 
the  letter  T  is  pasted  and  enter  it,  "  Thurber,  H.  K.  &  Co.,  5." 

3.  The  Ledger  is  ruled  with  a  triple  line  down  the  centre  to  separate 
the  Dr.  and  Cr.  sides.  The  space  to  the  left  of  this  line  is  for  debits, 
and  to  the  right  for  credits.  Each  side  is  subdivided,  and  has  columns 
for  the  month,  day  of  the  month,  explanations,  folios,  dollars  and  cents. 

4.  In  Single  Entry  books  we  keep  but  one  class  of  accounts,  viz.,  Per- 
sonal ;  while  in  Double  Entry,  three  classes  are  kept : 

Firsts  Personal  accounts  with  firms,  corporations,  or  individuals. 
Second^  Property  accounts,  to  show  cost  and  revenue  from  Real  Estate, 

Mdse.,  Bank  Stock,  Steamers,  &c. 
Third,  Profit  and  Loss  accounts,  to  show  losses,  expenses,  and  gains. 

All  gains,  losses,  and  expenses  may  be  kept  under  one  head,  or  under 
different  heads,  such  as  Expense,  Interest,  Rent,  Taxes,  &c. 

24 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPINa. 


RULES  FOR  JOURNALIZING. 


Ques,  1.  What  is  the  general 
Rule  governiog  all  Journal  entries  ? 

Ques.  2.  What  is  the  Rule  for 
opening  entries  ? 

(See  ^t  1  and  2,  p.  sa) 

Que8,  3.  When  do  you  debit  a 
personal  account? 

(See  t  3,  p.  26.) 

Ques.  Jp.  When  do  you  credit  a 
personal  account  ? 

(See  If  3,  p.  26.) 

Ques.  5.  What  is  the  general 
Rule  for  receiving  and  delivering 
property  ?  * 

Ques.  6.  What  is  the  special 
Rule  for  debiting  property  ac- 
counts ? 

(See  1  4,  p.  26.) 

Ques.  7.  What  is  the  special 
Rule  for  crediting  property  ac- 
counts ? 


Ques.  8.  What  is  the  Rule  for 
debiting   and  crediting  Profit  and 

Loss? 


Rule  1.  The  Debits  and  Credits 
of  every  Journal  entry  must  be 
equal  in  amount. 

Rule  2.  The  Stock  acc't  repre- 
sents myself,  and  must  be  debited 
for  what  I  owe,  and  credited  for 
what  I  possess. 

Rule  3.  When  a  person  gets  into 
my  debt,  or  I  get  out  of  his  debt, 
he  is  Dr.  for  the  amount  ? 

Rule  Jf.  When  I  get  into  a  per- 
son's debt,  or  he  gets  out  of  my 
debt,  he  is  Cr.  for  the  amount. 

Rule  5.  The  thing  received  is 
always  Dr. ;  the  thing  delivered  is 
always  Cr. 

Rule  6.  When  property  becomes 
minfe,  I  debit  it  for  its  cost  or  value, 
and  if  it  costs  me  anything  after- 
wards, I  debit  it  for  that  cost. 

Rule  7.  When  property  brings 
me  in  anything,  I  credit  it  with  the 
amount,  and  when  it  ceases  to  be 
mine,  I  credit  it  with  its  value,  or 
what  I  receive  for  it. 

Rule  8.  Profit  and  Loss  account 
is  always  debited  when  I  lose,  and 
credited  when  I  gain. 


*  The  thinfrs  received  and  delivered  usually  consist  of  Cash,  Mdse.,  and  Notes,  and  the 
learner  in  reading  a  Day  Book  entry  should,  first  of  all,  ascertain  if  anything  had  been  received 
or  delivered  in  the  transaction. 

25 


RULES  FOR  JOURNALIZING. 


Ques.  9.  What  is  a  Bill  Receiv- 
able? 

Ques.  10.  What  is  a  Bill  Pay- 
able? 

Ques.  11,  What  is  classed  under 
the  head  of  Mdse.  ? 

Ques.  12,  What  is  classed  under 
the  head  of  Cash  ? 


Rule  9.  Any  obligation  on  paper 
which  I  hold  against  others  is  a 
Bill  Receivable. ' 

Bule  10.  Any  obligation  on  paper 
held  by  others  against  me  is  a  Bill 
Payable. 

Bule  11.  All  goods  that  I  buy  to 
sell  again. 

Bule  12.  All  checks,  sight  drafts, 
bank  notes,  or  anything  that  is 
equivalent  to  money. 


1.  Where  the  term  "Stock"  is  used  in  the  Journal  or  Ledger,  it  al- 
ways refers  to  the  account  representing  myself,  and  in  which  I  keep  a 
record  of  the  capital  I  have  invested.     It  never  refers  to  goods  in  store. 

2.  The  first,  entry  on  a  Day  Book,  when  beginning  business,  is  a 
statement  of  what  you  are  worth,  and  what  you  owe,  and  we  term  it  your 
opening  entry.  Sometimes,  when  the  items  are  numerous,  two  entries  are 
made,  one  of  which  shows  your  Effects  and  the  other  your  Liabilities. 
Rule  2  applies  to  these  opening  entries,  and  so  rarely  to  any  subsequent 
ones  that  we  say  to  the  learner :  "  As  soon  as  you  have  journalized  the 
opening  entry  or  entries,  set  Rule  2  aside." 

3.  The  attention  of  the  teacher  is  directed  to  Rules  3,  4,  5,  and  6,  in 
Set  I.,  p.  7.  If  the  condensed  Rules  we  now  give  are  not  readily  under- 
stood, it  may  assist  the  learner  to  make  use  of  those  on  p.  Y. 

4.  Another  Rule  for  debiting  and  crediting  property  accounts  is, 
"  The  receivitig  account  is  Dr.  to  the  imparting  account."  That  is,  an 
account  receiving  a  benefit  is  debtor  to  the  account  imparting  it.  Thus, 
if  you  sell  a  bbl.  of  Flour  for  cash,  Mdse.  acc't  imparts  the  benefit,  and 
Cash  acc't  receives  it ;  therefore,  the  entry  would  be — 

Cash,  Dr. 

To  Mdse. 

26 


SET  II.—DOUBLE  ENTRY  BOOK-KEEPINa. 

DIRECTIONS  TO  TEACHERS. 

1.  Let  the  pupil  write  up  tlie  Day  Book  for  the  month  of  January 
only.  It  is  our  experience  that  he  will  obtain  a  clearer  understanding 
of  the  routine  of  Book-keeping  by  carrying  the  business  a  month  at  a 
time,  from  the  Da)^  Book  through  the  Journal  to  the  Ledger. 

2.  Notify  the  pupil  that  the  explanations  are  not  to  be  copied  with 
the  Day  Book  transactions. 

3.  A  line  must  be  drawn  to  separate  the  entries,  and  when  the  date 
changes,  this  line  must  be  double,  and  the  new  date  must  be  inserted  mid- 
way between  the  marginal  line  and  the  dollar  column. 

4.  After  the  Day  Book  for  January  has  been  written,  let  the  pupil 
make  the  Journal  entries  on  a  slate.  After  pointing  out  any  errors  he 
may  make,  let  him  repeat  the  operation  as  often  as  may  be  necessary  to 
insure  a  thorough  understanding  of  the  process.  This  part  of  the  work 
requires  patience  on  the  part  of  the  teacher,  and  perseverance  on  the 
part  of  the  pupil.  The  teacher  should  fully  explain  the  process  of  Jour- 
nalizing, showing  the  pupil  how  to  analyze  Day  Book  entries  in  .order  to 
determine  the  debits  and  credits  for  the  corresponding  Journal  entries, 
explaining  the  various  Ledger  accounts  and  pointing  out  the  applications 
of  the  Rules  already  committed  to  memory.  Some  pupils  will  be  aided 
and  enlightened  by  such  explanations,  while  others  make  better  progress 
by  following  a  Rule  arbitrarily. 

5.  When  writing  up  the  Journal,  leave  a  blank  line  between  cac^i 
entry,  and  rule  it  as  directed  in  paragraph  3,  above. 

6.  After  Journalizing  one  month,  the  entries  should  be  compared 
with  the  Day  Book,  and,  if  correct,  should  be  checked  on  the  Day  Book 
in  pencil,  on  the  left  of  the  marginal  line.  Then  post  and  check,  as 
directed,  pp.  38,  39,  40,  and  so  with  the  months  of  February  and  March. 

7.  We  give  in  the  Day  Book  and  Journal  of  this  set  a  series  of  ques- 
tions and  answers  that  are  not  intended  for  the  pupil  to  memorize,  but  as 
aids  to  the  teacher,  who  will  find  them  full  and  complete.  The  transac- 
tions are  limited,  to  enable  us  to  devote  more  space  to  explanations. 

27 


NEW  YORK,  January  1,  1875. 


On  commencing  business  this  day,  I  liave  tlie  following  assets  : 

Cash  on  hand,      -    - - $4000 

I  hold  Chas.  E.  HiU  &  Co.'s  note  for 1000 

Making  the  total  amount  I  possess 

Ques.  1.  This  being  a  statement  of  what  you  possess  when  you 
begin  business,  what  kind  of  an  entry  is  it  termed  ? 

Ques.  2.  What  Rule  for  Journalizing  applies  to  it  ? 

Ques.  3.  What  does  the  Rule  direct  you  to  do  with  what  you 
possess  ? 

Ques.  If..  Is  the  $5000  credit  for  your  Journal  all  you  require? 

Ques.  5.  Do  you  receive  anything  into  the  business  ? 

Note.  After  sifting  the  entry,  we  find  Cash  account  and  Bills  Eeceivable 
account  are  both  debtor  to  me  (Stock  acc't) ;  therefore,  to  form  oar  Journal 
entry,  we  say  that  "  Sundry  acc'ts  are  debtor  to  Stock  acc't,"  and  extend  the 
amount  into  the  credit  column  of  the  Journal.  Cash  acc't  is  Dr.  for  $4000, 
which  is  stated,  and  the  amount  extended  into  the  Dr.  column,  and  the  same 
with  Bills  Rec,  which  is  Dr.  for  the  note  we  hold  against  C.  E.  Hill  &  Co. 


My  liabilities  are 


Ques.  1.  This  being  the  amount  you  owe  on  commencing  busi- 
ness, what  Rule  will  apply  to  if? 

Ques.  2.  What  are  opening  entries? 

Ques.  3.  What  account  do  you  debit  for  this  am't  ? 

Ques.  4'  Why? 

Ques.  5.  What  is  required  to  complete  this  entry? 

Ques.  6.  You  owe  Belt  &  Cilley  this  amount ;  look  over  your 
Rules  and  see  if  you  can  find  one  relating  to  personal  accounts. 

Note  1.  We  have  endeavored  to  make  our  series  of  "Ques."  and  "Ans." 
complete,  that  they  may  always  be  an  ever-ready  and  convenient  assistant  to 
the  student,  and  so  lessen  the  labor  of  the  teacher.  It  may  appear  to  some 
persons  that  there  is  needless  repetition  in  the  many  ways  we  endeavor  to 
unfold  and  fix  in  the  student's  mind  the  various  principles,  but  practical  in- 
structors will  fully  appreciate  the  advantage  of  this  drilling. 

Note  2.  The  matter  in  small  type  is  not  to  be  transcribed  by  the  student 
when  writing  his  Day  Book,  but  is  intended  as  an  exercise  to  assist  him  in 
Journalizing,  and  should  have  his  close  attention. 

Note  3.  The  student  should  read  the  abbreviations  on  pp.  19,  20,  21,  and  use 
them  when  he  can. 

Note  U.  As  the  Journalizing  proceeds,  each  entry  must  be  marked  off  in 
ink,  as  on  the  left  margin  of  the  above  entries. 

28 


a  CL  /•  I 


NEW  YORK,  January  1,  1875.       Dr.      Or.  1 


Sundry  accounts,  Dr.  To  Stock  acc't,  ------- 

Casli  account.  Dr.    ------------- 

Bills  Receivable  account,  Dr.    --------- 

Ans.  1.  An  opening  entry. 

Ans.  2.   Rule  2  applies  to  all  opening  entries. 

Ans.  3.  To  credit  the  Stock  acc't  (wliick  is  myself) 
with  the  am't. 

Ans.  4.  No ;  Rule  1  requires  that  I  must  have  an 
am't  in  the  Dr.  column  to  equal  the  credit. 

Ans.  5.  Yes ;  I  receive  into  the  business  Cash  $4000 
and  Bills  Rec.  $1000,  and  by  Rule  5  I  must  debit  them. 

Note.  Observe  that  we  have  divested  the  entry  of  all  surplus 
matter,  leaving  only  the  name  of  the  accounts  to  be  debited  and 
credited,  and  the  amount  for  each.  Read  p.  23.  Each  Dr.  and  Cr. 
lias  a  line,  that  they  may  be  distinct,  easily  read,  and  free  from 
danger  of  error  in  posting. 

//      

Stock  account,  Dr.    --        ---------- 

To  Belt  &  Cilley's  account, 

Ans.  1.  Rule  2  applies  to  the  opening  entries. 

Ans.  2.  Opening  entries  are  the  statements  that  show 
what  I  possess,  and  how  much  I  owe  when  commenc- 
ing business ;  this  and  the  entry  preceding  it  are  the 
ones  I  can  term  opening  entries. 

Ans.  3.  I  debit  Stock  (my  acc't),  as  required  by  Rule  2. 

Ans.  If..  I  have  credited  myself  with  what  I  possess, 
and  must  debit  myself  (Stock  acc't)  with  the  am't  I  owe. 

Ans.  5.  Rule  1  requires  equal  debits  and  credits,  so  I 
must  credit  some  account  for  $200. 

Ans.  6.  Rule  6  says,  "  When  I  get  into  their  debt  I 
must  credit  them  ;"  therefore,  I  credit  Belt  &  Cilley  for 
$200. 

JVbte.  In  Double  Entry  an  accH  is  always  Dr.  to  some  other 
acc't,  hence  the  form  of  this  Journal  entry.  Stock  (my  acc't)  is 
Dr.  To  Belt  &  Cilley  because  I  owe  them  this  am't. 

*  The  fij?ures  in  this  column  are  "Ledger  Folios'"  (L.  F.),  and 
are  inserted  only  as  you  post  a  Dr.  or  Cr.  from  this  book  to  the 

Ledger. 

29 


4000 
1000 


200 


5000 


200 


]S^EW  YOKK,  January  5,  1875. 


Bo't  of  H.  K.  Tliurber  &  Co. 
Mdse.  per  invoice,     ----------«---- 

Our  first  object  being  to  find  tbe  Rules  tbat  will  enable  us  to 
Journalize  this  entry,  let  us  begin  and  try  each  : 

Ques.  1.  Will  Rule  1  apply?         Ques.  3.  WiU  Rule  3  apply? 

Ques.  2.  Will  Rule  2  apply  ?         Q,ues.  4.  Will  Rule  4  apply  ? 

Ques.  5.  Now  you  have  a  credit,  but  according  to  Rule  1  a  debit 
is  required  to  complete  your  entry,  and  as  you  have  already  tried 
four  Rules,  and  only  find  one  that  applies,  we  must  seek  further. 
What  does  Rule  5  govern  ? 

Ques.  6.  Do  you  receive  anything  in  this  transaction  ? 

Note.  You  may  credit  a  person  without  entering  particulars  on  the  Day 
Book,  as  in  this  entry,  as  you  always  have  their  invoice  to  refer  to  in  case  a 
dispute  should  arise.  In  charging  a  person  with  goods  sold,  you  must  in- 
variably specify  the  nutaber  of  packages,  weight,  price,  and  all  particulars, 
for  if  you  are  compelled  to  collect  by  law  you  must  be  able  to  give  items. 


11 


Bo't  of  Howell,  Barr  &  Co. 
50  bbls.  Syrup, 2200  galls.  @  W. 

Ques.  1.  This  entry  being  similar  to  the  preceding  one,  can  you 
follow  the  same  Rules  ? 

Ques.  2.  Why  not  open  an  acc't  called  "  Syrup  "  and  debit  it  ? 

Note.  Direct  the  attention  of  the  pupil  to  the  explanations  at  the  Dr.  and 
Cr.  side  of  the  Mdse.  acc't  in  the  Ledger,  and  have  him  understand  that  the 
Dr.  side  shows  the  cost  and  charges ''of  Mdse.,  and  the  Cr.  side  the  sales. 
Understanding  this  assists  the  learner  in  the  work  of  Journalizing,  and  a  fre- 
quent reference  to  the  Ledger  explanations  will  enable  him  to  remember  and 
understand  his  Rules. 


25 


Sold  W.  H.  Crump  &  Co.  for  Cash, 
10  bbls.  Syrup, 440  galls.  @  60/^. 

Let  the  student  try  each  Rule  that  he  thinks  will  apply  to  this 
entry,  and  refer  to  the  explanations  at  the  head  of  Cash  and 
Mdse.  acc'ts  in  the  Ledger ;  then  ask 

Ques.  1.  What  do  you  exchange  with  Crump  &  Co.  ? 
Ques.  2.  Have  you  any  Rule  for  receiving  and  delivering  prop- 
erty? 

Q;aes.  3.  What  does  it  require  you  to  do  in  this  transaction  ? 

30 


NEW  YORK,  January  5, 1875.        Dr.      Cr.  2 


Mdse.  account,  Dr. 

To  H.  K.  Thurber  &  Co.'s  account, 

Ans.  1.  Yes,  partly,  as  it  applies  to  every  entry,  but 
more  particular  Rules  are  also  necessary. 

Ans.  2.  No ;  it  applies  only  to  opening  entries,  and 
as  tliey  are  Journalized,  I  have  no  further  use  for  tMs 
Rule. 

Ans.  3.  No. 

Ans.  If..  Yes ;  I  get  into  Thurber  &  Co.'s  debt,  and  by 
the  Rule  must  credit  them. 

A71S.  5.  It  governs  the  receiving  and  delivering  of 
property. 

Ans.  6.  Yes ;  I  receive  Mdse.,  and  by  the  Rule  must 
debit  it,  so  I  make  Mdse.  Dr.  To  Thurber  &  Co.,  and  it 
completes  the  entry. 


11 


Mdse.  account,  Dr. 

To  Howell,  Barr  &  Co.'s  account, 

Ans.  1.  Yes  ;  Rule  5  requires  me  to  debit  Mdse.,  the 
thing  received,  and  Rule  4  to  credit  Howell,  Barr  &  Co. 
when  I  get  into  their  debt. 

Ans.  2.  It  would  be  almost  impossible  to  keep  sepa- 
rate accounts  for  syrup,  tea,  coffee,  sugar,  and  the 
numerous  other  articles  usually  sold  by  grocers,  and  I 
therefore  group  or  class  all  goods  which  I  buy  to  sell 
a^ain  under  the  head  of  Mdse. 


25 


Cash  account.  Dr. 

To  Mdse.  account, 

Ans.  1.  I  receive  Cash  in  exchange  for  Mdse. 
Ans.  2.  Yes ;  Rule  5. 

Ans.  3.  It  requires  me  to  debit  Cash,  the  thing  re- 
ceived, and  credit  Mdse.,  the  thing  delivered. 

Note.  In  business,  the  word  "  account"  after  Cash  and  Mdse.  in 
the  above  entry  would  not  be  used,  although  always  understood. 
We  continue  to  use  it  in  this  set  to  impress  on  the  mind  of  the  pu- 
pil the  fact  that  this  book  is  only  for  the  names  or  titles  of  accHs. 

31 


pil 


1110 


990 


264 


1110 


990 


264 


NEW  YOKK,  February  1,  1875. 


Sold  T.  G.  Stewart  &  Co.,  on  acc't,  @  30  days, 
20  bbls.  Syrup,    -    - 880  galls.  @  W- 

Ques.  1.  Do  you  receive  anything  ? 
Ques.  2.  Do  you  deliver  anything  ? 
Ques.  3.  Do  you  receive  value  for  the  goods  ? 
Ques..  4.  What  is  required  of  you  when  any  one  gets  into  your 
debt? 

Note.  The  5th  Eule  is  often  termed  "  the  Common  Rule,"  as  it  applies  to 
alniost  every  entry.  Almost  every  entry  on  books  phov^^s  something  received 
or  delivered,  and  therefore  the  application  of  this  Rule  is  more  frequent  than 
any  other,  except  Rule  1,  which  proves  every  entry,  but  Journalizes  none. 

======:    lO    — 

Paid  Manhattan  Gas  Co. 
Cash  in  full  for  gas  consumed  to  date,    --------- 


Ques.  1.  Will  Rule  5  apply  to  this  transaction  ? 

Ques.  2.  Which  side  of  the  Cash  acc't  in  the  Ledger  shows  the 
money  paid  out  ? 

Ques.  3.  Try  each  Rule,  and  state  which  one  will  furnish  the 
debit  that  is  necessary  to  complete  this  entry. 

Note.  All  the  expenses  of  conducting  a  busine^  are  losses,  and  as  such 
are  debited  to  Profit  and  Loss  acc't,  which  Rule  8  requires  to  be  debited  and 
credited  so  as  to  make  it  a  complete  exhibit  of  the  gains  and  losses.  In  the 
payment  of  a  gas  bill  we  receive  no  property  that  can  be  debited  by  Eule  5, 
and  no  person  gets  into  debt  that  can  be  debited  by  Rule  3.  It  is  a  necessary 
loss  sustained  in  business,  and  as  all  our  gains  are  credited  to  Profit  and 
Loss,  we  must  be  particular  to  debit  the  same  account  with  all  expenses  and 
losses.  Then  at  settlement  time  we  find  on  one  side  of  the  Profit  and  Loss 
all  our  losses,  and  on  the  other,  aU  our  gains,  and  it  is  easy  to  determine  what 
has  been  made  in  the  concern. 

The  accounts  to  be  debited  and  credited  must  be  determined  by  Rule.  It 
will  not  do  to  guess  at  a  debit  or  a  credit,  as  your  Day  Book  and  Journal 
must  harmonize.  If  your  Day  Book  states  that  Cash  has  been  paid  out,  and 
Cash  is  debited  in  the  Journal,  you  violate  Rule  5,  and  make  your  Journal 
show  that  it  was  received. 


22 


Sold  Dunlevy  &  Bro. 

20  bbls.  Syrup, 880  galls.  @  61^. 

Received  in  payment  of  the  same  their  note  at  60  days. 

Ques.  1.  Try  Rule  5,  and  see  if  it  will  apply. 

32 


NEW  YOKK,  February  1,  1875.      Dr.      Or,  S 


T.  G.  Stewart  &  Co  's  account,  Dr. 
To  Mdse.  account, 


Ans.  1.  No. 

Ans.  2.  Yes ;  I  deliver  Mdse.,  and  by  Rule  5  I  credit  it. 
Ana.  3.  No ;  but  Stewart  &  Co.  get  into  my  debt. 
Ans.  4.  I  am  required  by  Rule  3  to  debit  him. 

Note.  The  explanations  at  the  head  of  Mdse.  acc't  in  the 
Ledger  show  that  all  sales  must  go  to  the  Cr.  side  of  that  account, 
and  liule  5  requires  us  to  credit  Mdse.  for  all  goods  delivered. 


10 


Profit  and  Loss  account,  Dr. 
To  Casli  account,     -    .    - 


Ans.  1.  Yes ;  it  gives  me  tbe  Cr.,  as  I  delivered  Casb. 

Ans.  2.  The  Cr.  side  shows  all  money  paid  out. 

Ans.  3.  The  first  Rule  is  used  for  every  entry ;  the 
second,  only  for  opening  entries  when  I  begin  business ; 
the  third,  only  when  some  one  gets  into  my  debt ;  the 
fourth,  when  I  get  into  some  person's  debt,  which  is 
not  the  case  here,  as  I  pay  the  Gas  Co.  when  they  pre- 
sent the  bill.  The  fifth  Rule  gives  me  the  credit ;  the 
sixth  and  seventh  Rules  refer  to  real  estate,  bank  stock, 
&c. ;  the  eighth  Rule  will  furnish  the  debit,  for  I  have 
paid  out  money  without  any  person  getting  into  my 
debt,  or  receiving  anything  of  value  in  return  for  it ; 
therefore,  I  debit  Profit  and  Loss,  and  by  so  doing  make 
my  debits  and  credits  even. 


22 


Bills  Receivable  account.  Dr.     --- 

To  Mdse.  account, 

Ans.  1.  The  fifth  Rule  will  apply,  as  I  receive  an  ob- 
ligation on  paper,  and  deliver  Mdse. 


1.  The  teacher  should  explain  that  the  accounts  in  the  Ledger 
show  just  what  the  Rules  for  Journalizing  make  them  show. 
Thus,  Rule  5  requires  a  debit  when  Cash  is  received;  consequent- 
ly, the  Dr.  side  of  Cash  shows  all  money  received.  The  same 
Rule  requires  a  credit  when  Cash  is  delivered,  and  by  following 
this  Rule  we  make  the  Cr.  side  of  Cash  show  all  money  paid  out. 

C  33 


528 


11 


536 


25 


528 


11 


25 


536  80 


NEW  YOKK,  February  27,  1875. 


Received  of  Clias.  E.  Hill  &  Co. 

Casli  in  payment  of  their  note  due  this  day, 

Ques.  1.  What  Eule  is  the  most  general  in  its  application  ? 

ques.^.  Why? 

Ques.  3.  Why  not  credit  the  parties  who  paid  the  money  ? 

Note  1.  When  a  note  is  received,  you  keep  an  account  of  it  juet  as 
you  do  of  Cash  or  Mdse. ;  that  is,  you  debit  it  when  received  (see  first  entry 
Jour.  1),  and  credit  it  when  delivered.  The  account  on  the  Ledger  then  shows 
how  many  dollars  in  notes  have  been  received,  and  how  many  dollars  in  notes 
have  been  paid  out,  and  by  the  difference  between  the  two  sides  of  the  acc't 
the  amount  you  still  have  on  hand.    See  Ques.  9,  p.  26. 

March  1  

Gave  Howell,  Barr  &  Go.,  in  settlement  of  the  am't  I  owe  them, 
my  note  at  30  days  for 

Ques.  1.  Will  the  Common  Rule  (5)  apply  ? 

Ques.  2.  What  Rule  will  give  the  debit  ? 

Ques.  3.  Why  apply  Rule  3  ? 

Ques.  4.  When  you  pay  this  note,  what  will  you  debit  ? 

Note  S.  When  you  give  out  notes  that  are  signed  by  yourself,  you  keep  an 
account  of  them  under  the  head  of  Bills  Payable,  as  they  are  your  promises,  in 
writing,  to  pay.  See  Ques.  10,  p.  26.  Bills  Payable  is  credited  when  de- 
livered, and  debited  when  received.  As  you  must  first  sign  and.  deliver  a  Bill 
Payable  before  you  can  pay  and  lift  it,  the  acc't  must  never  be  made  to  show 
that  you  paid  more  notes  than  you  gave  out.  When  you  give  a  person  your 
note,  debit  him  the  same  as  if  you  had  given  him  the  money,  and  credit  Bills 
Payable— the  thing  delivered.  Unless  the  entry  distinctly  states  that  it  is 
"my"  note,  no  debit  or  credit  to  the  Bills  Payable  acc't  is  proper. 

^  10  — 

Sold  Wm.  McKown  &  Co. 

10  bbls.  Flour, @  $7.50      $75.00 

5  h'f  chests  Young  Hyson  Tea,     -    330  lbs.  @    1.00      330.00 
10  bags  Rio  Coffee, 1600 fi       @        33      368.00 

Received  in  payment 

Cash,     -    -    - 273.00 

Their  note  at  30  days  for 500.00 

Ques.  1.  What  Rule  must  be  applied  ? 
Ques.  2.  What  do  you  receive  ? 
Ques.  3.  What  do  you  deliver  ? 

34 


NEW  YORK,  February  27,  1875.     Dr,      Or.  4 


Casli  account,  Dr.    -- .--.. 

To  Bills  Receivable  account,     ---.-..-- 

Ans.  1.  Rule  5. 

Ans.  2.  Because  in  nearly  every  transaction  there  is 
something  received  and  delivered. 

Ans.  3.  Because  I  must  credit  Bills  Receivable — the 
thing  delivered. 

^ March  1  : 

Howell,  Barr  &  Co.'s  account,  Dr. 

To  Bills  Payable  account, 

Ans.  1.  Yes ;  it  gives  me  the  credit,  for  I  deliver  my 
note,  which  is  a  Bill  Payable. 

Ans.  2.  Rule  3. 

Ans.  3.  I  cease  to  owe  Howell,  Barr  &  Co.  anything 
on  book  account. 

Ans.  4.  Bills  Payable — the  thing  received. 

=^===  10  — 

Sundry  accounts,  Dr.  To  Mdse.  account, 

Cash  account, 

Bills  Receivable  account, 

Ans.  1.  Rule  5. 

Ans.  2.  I  receive  Cash  and  a  Bill  Receivable,  both  of 
which  I  must  debit. 

Ans.  3.  I  deliver  Mdse.,  and  by  Rule  5  that  account 
must  have  credit. 

Kote.  In  this  transaction  we  deliver  one  thing,  and  in  ])ayment 
receive  two  things,  which  must  be  debited.  To  state  this  entry 
on  the  Journal,  we  must  use  some  term  that  will  show  that  Cash 
and  Bills  Receivable  are  both  debtor  to  Mdse.  The  term  in  gene- 
ral use  for  this  purpose  is  "  Sundries."  If  we  want  to  refer  to 
several  persons,  several  items,  or  several  things,  may  we  not 
write  "  Sundry  persons,"  "  Sundry  items,"  and  "Sundry  things?" 
"Sundry"  means  plurality,  or  more  than  one,  and  is  used  in 
book-keeping  in  the  Journal  and  Ledger  to  indicate  when  more 
than  one  acc't  is  debtor  to  another;  thus,  "  Sundry  Accounts  Dr. 
To  Mdse.,"  means  more  than  one  acc't  is  debtor;  or,  "Mdse.  Di". 
To  Sundry  Accounts,"  means  more  than  one  credit. 

An  experienced  book-keeper  would  abbreviate,  and  only  write 
"Sunds.  To  Mdse.,"  or  "Mdse.  To  Sunds." 

35 


1000 


990 


273 

500 


1000 


990 


773 


NEW  YORK,  March  17,  1875. 


Sold  J.  W.  Craig 

10  bbls.  Flour, @$7.50 

Received  in  payment  his  check  for  $75  on  City  National  Bank, 

QuGS.  1.  What  do  you  receive  ? 

Q,ues,  2.  What  is  the  check  the  equivalent  of  ? 

0,1168,  3.  What  account  will  you  credit  t 

=  24  


Sold  Caskey  &  Short,  Pittsburgh,  Pa., 

5  bags  Coffee, 800  lbs.  @  23^. 

Received  in  payment  their  acceptance  payable  in  30  days  from 

this  date. 

Quea.  1,  What  is  received  and  delivered  ? 

Ques.  2.  What  accounts  will  you  debit  and  credit  ? 

Note.  Rule  9,  p.  26,  determines  what  is  classed  as  Bills  Receivable,  viz.,  all 
obligations  on  paper  which  1  hold  against  others.    See  ITorm  VII.,  p.  135. 


Due  Robert  Bailey,  clerk. 
For  2  mos.  salary, @  $25.00 

Ques.  1.  As  you  are  in  debt  to  Bailey  for  this  amount,  what 
must  be  done  ? 

Ques.  2.  What  account  can  you  debit  ? 

Note.  You  have  received  nothing  that  Rule  5  requires  you  to  debit,  and  it 
does  not  appear  that  any  person  gets  into  your  debt  so  that  Rule  3  will  apply. 
It  is  one  of  the  necessary  expenses  of  a  business. 


Paid  Robert  Bailey 
Cash  in  full  to  date,  .----..--- 

Note.  This  entry  is  introduced  to  show  that  it  is  unnecessary  labor  to 
credit  a  person  with  the  amount  due  him,  and  immediately  charge  or  debit 
him  with  the  same  amount.  In  this  case  we  open  an  acc't  with  Bailey  and 
credit  it  with  $50,  and  in  the  next  entry,  on  the  same  day,  w^e  have  debited 
or  charged  him  with  $50,  and  by  so  doing  closed  his  account.  This  extra 
labor  could  have  been  avoided  by  making  the  following  entry : 

Paid  Robert  Bailey,  clerk. 

Cash  in  full  for  2  mos.  salary  to  date. 

We  did  not  open  an  account  with  J.  W.  Craig  and  debit  it  with  the  bill  sold 
him  on  March  17,  because,  to  state  it  positively,  he  did  not  get  into  our  debt, 
having  given  his  check  for  ^75  immediately. 

36 


NEW  YORK,  March  17,  1875.       Ih\      Or.  5 


Cash  account.  Dr. 
To  Mdse.  account, 


Ans.  1.  I  receive  liis  check. 

Ans.  2.  Checks  on  banks  are  always  considered  equiv- 
alent to  Cash,  and  I  therefore  debit  Cash  as  the  thing 
received. 

A7i%.  3.  I  credit  Mdse. — the  thing  delivered. 

Note.  Nothing  but  the  Ledger  title  of  accounts  are  written  in 
the  Journal,  with  the  amount  that  is  to  go  to  the  respective  acc'ts 
named.  Thus,  we  write  "Cash  account,  Dr.,"  as  aoove,  it  being 
the  thing  received.  We  could  not  write, ''  Check  account,  Dr.," 
as  there  is  no  account  of  that  name  in  the  Ledger,  but  we  can  class 
all  checks,  &c.,  that  are  current  as  money  as  Cash.  See  Quee.  12, 
p.  26. 


=====  24 
Bills  Receivable  account.  Dr. 
To  Mdse.  account,   -    -    -    - 


Ans.  1.  I  receive  an  obligation  on  paper  against  an- 
other, and  deliver  Mdse. 

Ans.  2.  I  debit  Bills  Receivable  for  the  obligation  on 
paper  received,  and  credit  Mdse. — the  thing  delivered. 


31 


Profit  and  Loss  account.  Dr. 
To  Robert  Bailey's  account. 


Ans.  1.  I  must  credit  him,  as  directed  by  Rule  4. 

Ans.  2.  I  must  debit  Profit  and  Loss,  as  I  have  had 
the  benefit  of  his  services,  which,  although  not  now  of 
tangible  value,  assisted  me  in  making  a  profit. 

Note.  The  expenses  of  conducting  a  business  are  always  to  be 
treated  as  losses,  and  charged  to  Profit  and  Loss.  Advertising, 
gas,  and  fuel  bills,  rent,  clerk  hire,  &c.,  are  necessary  expenses 
and  must  be  charged  ae  stated  to  make  the  Dr.  side  of  the  Profit 
and  Loss  acc't  show  all  my  expenses  and  losses. 


Robert  Bailey's  account.  Dr. 
To  Cash  account,     -    -     -     - 


37 


75 


184 


50 


50 


75 


184 


50 


50 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPINa. 

DIRECTIONS  FOR  OPENING,  POSTINQ,  AND  CLOSING  THE  LEDGER. 

1.  By  counting  the  lines  reserved  on  the  printed  book  for  each  acc't, 
the  amount  of  space  required  for  each  acc't  in  the  manuscript,  or  blank 
book,  can  be  easily  and  safely  determined.  To  avoid  crowding,  and  to 
make  an  allowance  for  mistakes  in  posting,  allow  two  or  three  extra  lines 
to  each  account.     Page  as  in  text-book. 

2.  Write  the  heading  of  each  account  in  a  neat  hand,  shading  the 
downward  strokes  of  each  letter  to  give  the  title  prominence.  Write  the 
abbreviations  Dr.  and  Cr.  at  the  top  of  the  page. 

3.  The  explanations  in  parentheses  at  the  head  of  each  account  in  the 
text-book  show  what  the  Dr.  and  Cr.  side  of  each  account  represents, 
and  to  what  class  the  account  belongs.  These  are  intended  to  assist  the 
pupil  in  the  work  of  closing  the  Ledger,  but  he  can  use  his  pleasure  as  to 
copying  them  into  his  blank  book  when  writing  his  Ledger  titles. 

4.  Do  not  let  the  titles  of  accounts  extend  across  the  date  columns, 
as  yon  want  the  space  to  insert  the  year. 

5.  The  triple  line  down  the  centre  of  the  Ledger  pages  divides  them 
into  two  parts — Dr.  and  Cr.  The  first  left-hand  column  on  the  Dr.  side 
is  for  the  month  ;  the  next,  for  the  day  of  the  month ;  next,  for  explana- 
tion ;  next,  for  Journal  page ;  next  two,  for  dollars  and  cents.  The  Cr. 
side  is  divided  in  precisely  the  same  way. 

POSTING  FROM  THE  JOURNAL  TO  THE  LEDGER. 

6.  To  illustrate  this  part  of  the  work,  we  make  use  of  the  first  entry 
on  the  Journal,  under  date  of  January  1,  1875: 


Sundry  acc'ts.  Dr.  To  Stock  acc't, 

Cash  acc't,  Dr.  for 

Bills  Receivable  acc't,  Dr.  for  - 


Dr, 


4000 
1000 


Cr, 


5000 


v.  First,  Stock  account  is  to  be  credited  for  |5000.     Turn  to  that 
account  on  the  Ledger  and-  insert  this  amount  in  the  dollar  column,  on 

38 


POSTING  FROM  THE  JOURNAL  TO  THE  LEDGER. 

the  CV.  side  of  the  account;  insert  the  date  (January  1)  in  the  dato 
column,  placing  the  year  above  the  month,  as  in  the  text-book.  In- 
sert in  the  explanation  column  what  the  account  is  credited  "  By,"  for 
in  Double  Entry  all  accounts  are  debtor  "  To  "  or  credited  "  By "  some 
other  account.  See  Rule  1,  p.  25.  In  this  entry  Sundry  acc'ts  are  Dr. 
to  Stock  acc't,  and  as  an  account  is  always  credited  "  By  "  the  account  or 
accounts  that  are  debtor  to  it,  we  explain  this  credit  of  $5000  to  the  Stock 
account  by  writing  in  the  explanation  column  "  By  Sundries,"  i.  e.,  By 
Several  accounts.  Next,  insert  the  page  of  the  Journal  from  which  the 
entry  was  taken,  in  the  folio  column,  to  the  left  of  the  dollar  column. 
To  show  that  the  credit  of  $5000  to  Stock  has  been  posted,  insert 
in  the  Journal,  on  the  same  line  with  the  item  posted,  the  page  of 
the  Ledger  to  which  it  was  taken.  This  completes  the  posting  of  the 
credit.  Next  is  Cash  account.  Dr.  $4000.  Turn  to  the  Dr.  or  left-hand 
side  of  the  Cash  account  in  the  Ledger  and  insert  the  amount  in  the 
money  column,  and  the  date.  It  being  a  debit,  Cash  is  Dr.  to  some 
other  account:  an  account  is  always  debtor  ^^To"  the  accH  {or  ace'' is)  that 
is  credited.  The  Journal  entry  shows  that  Stock  is  credited,  and  you 
explain  this  debit  of  $4000  in  the  Cash  acc't  by  writing  in  the  explana- 
tion column,  "  To  Stock."  Next,  insert  the  Journal  page  in  the  remain- 
ing column,  and,  to  complete  the  posting,  insert  the  page  of  the  Cash 
acc't  on  the  same  line  with  the  item  posted.  This  leaves  another  debit 
to  post.  Turn  to  the  Bills  Receivable  acc't  on  the  Ledger  and  insert  the 
amount  ($1000)  in  the  money  column  on  the  Dr.  side.  Then  the  date 
and  explanation.  Bills  Receivable  is  Dr.  and  Stock  was  Cr. ;  so  you  ex- 
plain the  debit  as  you  did  in  the  Cash  acc't,  by  writing  in  the  explana- 
tion column,  "To  Stock."  Insert  the  Journal  page  in  the  remaining 
column,  and  the  Ledger  page  in  the  Journal. 

8.  Inserting  the  Ledger  pages  of  the  accounts  you  post  to,  serves  a 
double  purpose :  it  is  a  ready  reference  to  the  accounts  when  checking, 
and  also  shows  how  far  you  have  progressed  with  the  posting ;  for  as  far 
as  Journal  entries  have  the  Ledger  pages  attached,  so  far  are  they  posted. 

39 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 

CHECKING. 

9.  After  posting  the  month  of  January,  compare  and  check  the 
posting  from  the  Journal  to  the  Ledger,  to  see  that  each  amount  has 
been  transferred  to  the  right  account,  is  taken  to  the  proper  side  of 
the  account,  and  is  the  right  amount.  As  each  posting  is  found  cor- 
rect, check  it  in  pencil — thus,  /^ — on  the  right  of  the  folio  column  in 
the  Journal,  and  in  the  Ledger  make  a  dot  (.)  in  pencil  on  the  double 
red  line  to  the  left  of  the  dollar  column,  and  on  the  same  line  with 
the  item  that  has  been  examined  and  found  correct.  The  check  marks 
show  what  work  has  been  examined,  and  how  far  you  have  progressed 
with  the  examination.  The  teacher  should  impress  the  pupil  with  the 
importance  of  this  work,  and  never  allow  it  to  be  neglected  or  slighted. 

10.  After  posting  and  checking  your  work  up  to  March  31,  the  cor- 
rectness of  it  must  be  further  tested  by  taking  off  a  Proof  Sheet  or  Trial 
Balance.  See  form,  p.  49.  The  object  of  this  is  to  see  that  the  aggre- 
gate debits  and  credits  on  the  Ledger  are  equal,  as  they  will  be  if  your 
work  is  correct,  for  every  debit  has  its  corresponding  credit.  It  must  be 
known  whether  the  debits  and  credits  are  equal  before  attempting  to  close 
the  Ledger,  because  this  cannot  be  dojie  unless  they  are  equal.  The 
manner  of  taking  off  this  Proof  Sheet  is  very  simple.  First  add  the 
Dr.  and  Cr.  sides  of  all  open  accounts  on  the  Ledger,  and  insert  the  foot- 
ings of  each,  in  pencil,  to  the  left  of  the  money  columns,  as  shown  by 
the  small  figures  in  this  book.  Next,  transfer  the  footing  of  the  Dr.  and 
Or.  side  of  each  open  acc't  to  the  corresponding  columns  of  the  sheet, 
and  write  the  title  of  the  account  opposite,  as  shown  in  the  form  given 
for  a  guide.  After  all  the  accounts  are  gathered  on  the  Proof  Sheet,  the 
Dr.  and  Cr.  columns  are  footed,  and  if  the  footings  are  not  the  same,  it 
is  evident  that  an  error  exists  somewhere,  and  you  can  go  no  further 
until  it  is  found  and  rectified. 

11.  The  student  must  commit  to  memory  the  "Rules  for  Closing  the 
Ledger,"  p.  41,  and  also  the  exercises  under  each  account ;  after  which,  he 
is  prepared  for  the  work  of  closing. 

40 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 

CLOSING  THE  LEDGER. 

12.  To  determine  the  results  of  your  business,  gather  all  acc'ts  into 
the  Profit  and  Loss  and  Balance  acc'ts.  The  former  receives  the  gains 
and  losses,  and  the  latter  your  effects  and  liabilities.  The  Profit  and 
Loss  acc't  then  shows  how  much  you  have  gained  or  lost,  and  this  gain 
or  loss,  when  taken  to  your  acc't  (Stock),  will  show  how  much  is  due 
you  for  your  capital  and  added  profit.  After  the  gain  or  loss  is  taken  to 
Stock  acc't.  Stock  is  closed  into  Balance  acc't.  Balance  acc't  will  show 
on  one  side  your  property  and  debts  due  you  (effects),  and  on  the  other, 
what  your  concern  owes  to  others,  and  to  yourself,  viz.,  the  am't  taken 
from  Stock  acc't.  The  effects  will  suffice  to  pay  what  is  due  to  others,  and 
the  am't  due  you  as  per  Stock  acc't ;  that  is,  one  will  balance  the  other. 

RULES  FOR  CLOSING  THE  LEDGER. 

Note.  The  learner  must  commit  these  Rules  to  memory. 

Hule  1.  Personal  accounts  all  close  To  or  By  Balance. 
RuU  2.  Property  accounts  close  in  two  ways  : 

1st.  If  all  the  property  is  sold  or  disposed  of,  then  close  To  or  By 

Pkofit  and  Loss. 
2d.  If  all  or  part  of  the  'property  remains  on  hand,  credit  the  acc't 

first  By  Balance  for  the  amount  on  hand,  and  if  there 

still  he  a  difference  between  the  two  sides  of  the  acc't,  close 

it  To  or  By  Profit  and  Loss. 

Bute  3.  Accounts  exhibiting  gain  or  loss  close  To  or  By  Profit  and  Loss. 

Mule  4.  When  Profit  and  Loss  account  has  received  all  its  transfers,  it  closes 
To  or  By  Stock. 

Rule  5.  Bills  Payable  acc't  always  closes  To  Balance  for  the  amount  you 
owe  on  your  notes. 

Rule  G.  To  close  an  account,  write  the  name  of  the  account  it  closes  into 
on  the  lesser  side,  and  carry  the  amount  to  the  opposite  side  of  the  account  into 
which  it  closes,  and  write  the  name  of  the  account  that  it  was  taken  from. 
Refer  to  the  transfer  from  Cash  to  Balance  acc't. 

Rule  7.  In  re-opening  an  account,  the  Balance  is  brought  down  on  the  side 
opposite  the  closing  entry. 

41 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 


13.  The  pupil  must  bear  in  mind  that  the  closing  of  the  Ledger  is 
only  for  the  purpose  of  determining  how  much  he  has  gained  or  lost,  and 
recording  the  same  on  his  books.  It  does  not  alter  the  accounts  that 
close  into  Balance,  for  they  are  all  re-opened  by  bringing  the  balance 
down,  which  makes  each  account  show  the  same  after  closing  that  it  did 
before.     See  Belt  &  Cilley's  account  as  an  illustration. 

14.  Rule  2  is  difficult  for  beginners,  and  we  illustrate  its  application  : 
Dr.  MDSE.  ACCOUNT.  Cr. 


10  bbls.  Flour,  -    - 
To  Profit  &  Loss,  /. 


To  Bal.  bro't  down. 


X 

70 

X 

X 

X 

8 
78 

— 

X 

X 

14 

8  bbls.  Flour, 
By  Balance, 

78. 

70. 
Gain,    8. 


X 

64 

X 

U 

78 



If  you  buy  10  bbls.  Flour  at  $7,  Mdse.  acc't  will  be  debited  with  $70, 
and  if  you  sell  8  bbls.  Flour  at  $8,  Mdse.  will  be  credited  with  $64.  You 
have  2  bbls.  Flour  on  hand  that  cost  $14,  and  Rule  2  requires  you,  in 
closing  your  Ledger,  ta  Jirst  credit  the  account  "By  Balance"  for  the 
value  remainino:  on  hand.  Then,  followinof  the  Rule  further — "  If  there 
still  be  a  difference  between  the  two  sides,  close  it  To  or  By  Profit  and 
Loss " — we  close  the  acc't  by  an  entry  on  the  Dr.  side,  "  To  Profit  and 
Loss."  The  account  shows  that  the  Mdse.  cost  $70,  and  that  the  Mdse. 
sold  and  on  hand  amounts  to  $78,  or  $8  more  than  it  cost.  The  gain  is 
taken  to  Profit  and  Loss  account,  and  the  2  bbls.  Flour  on  hand  to  the 
Balance  acc't,  where  you  are  making  up  a  list  of  your  effects.  Refer  to 
the  Mdse.  acc't  in  the  Ledger,  and  you  have  another  illustration  of  the 
application  of  this  Rule.  The  Mdse.  is  all  disposed  of,  and  it  closes  "  To 
Profit  and  Loss."  In  the  Cash  acc't  you  have  another  illustration.  It  is 
credited  "By  Balance"  for  the  amount  on  hand,  and  that  entry  closes  it. 

15.  Rule  4  requires  you  to  close  Profit  and  Loss  into  Stock  after  it 
has  received  all  its  transfers,  but  this  need  not  be  done  until  all  others, 
except  Stock  and  Balance,  are  closed. 

42 


Dr,  (What  I  owe)       STOCK  (Representing  myself)  ACCOUNT  (What  I  pissess).       Cr 


1875. 
Jan. 
Mar. 


To  Belt  &  Cilley,     -    -    - 
"  Bal*  (net cap.),     fol. 


Ii999 
5199 


!  1875. 
Jan. 
Mar. 


Apr. 


By  Sundries,    -    -    • 
"  Profit  and  Loss, 

5199.55 
200. 


fol, 


By  Bal.  bro't  down, 


5000 
199 


5199 


4999  55 


1.  What  do  yon  post  to  Dr.  side  of  St'k  acc't  ? 

2.  What  to  the  Cr.  side  ? 

3.  When  do  you  close  it  ? 

4.  How  does  it  then  close  ? 

5.  What  does/oZ.  or/,  indicate  when  placed 
before  a  figure  in  the  folio  column  ? 

6.  Are  the  entries  marked  /.  or  fol  passed 
through  the  Journal  ? 


1.  What  I  owe. 

2.  What  I  possess. 

3.  After  Profit  and  Loss  closes  into  it. 

4.  To  or  By  Balance. 

5.  A  ti-ansfer  from  one  account  to  another 
on  the  f^ce  of  the  Ledger. 

6.  No ;  a  Dr.  and  Cr.  entry  is  made  in  the 
proper  accounts  in  the  Ledger, 

Note.  In  closing  the  Ledger,  the  Stock  acc't  is  the  last  account  closed,  except  the  Balance. 
All  accounts  showing  gain  or  loss  must  be  closed  into  the  Profit  and  Loss  acc't,  which  is  kept 
open  to  permit  this.  The  diS"erence  between  the  two  sides  of  the  account,  which  is  either  gain 
or  loss,  is  yours,  and  must  be  carried  to  your  acc't  (Stock).  After  the  gain  or  loss  is  entered, 
compare  the  difierence  between  the  two  sides  of  "Stock"  with  the  dift'crence  between  the  two 
sides  of  the  "Balance"  acc't,  and  if  both  accounts  show  the  same  result,  your  work  is  correct, 
and  you  then  close  Stock  acc't  into  Balance.  This  makes  both  sides  of  your  Balance  acc't 
even,  and  completes  the  closing  of  your  Ledger.  Notice  that  the  balance  is  brought  down  after 
the  acc't  was  closed.  By  the  closing,  the  result  of  your  business  up  to  and  including  March  31 
was  recorded,  and  on  the  next  day,  April  1,  the  net  amount  you  then  possess  is  brought  down 
to  continue  the  business.  The  entry,  "Bal.  bro't  down,"  is  treated  as  if  it  was  such  an  entry 
as  was  made  when  you  began  business,  Jan.  1. 

(All  money  received)     CASH  (Property)  ACCOUNT     (All  money  paid  out.) 


1875. 

Jan. 

1 

2.5 

Feb. 

27 

Mar. 

10 

17 

Apr. 

J 

To  Stock,    -    -  -  . 

Mdse.     -    -  -  . 

Bills  Eec.  -  -  . 

Mdse.     -    -  -  . 

do.       -    -  -  . 

6612. 
61.25 
-      .     6550.75 

To  Bal.  bro't  down. 


1875. 

1 

4000 

Feb. 

10 

2 

264 

Mar. 

31 

4 

1000 

'• 

4 

273 

5 

75 
5612 

- 

5550 

75 

By  Profit  and  Loss,  -  -    - 

"  Robt.  Bailey,  -    -  -    - 

"  Balance.,     -    -    -  fol. 

61.25 


3 

11 

5 

50 

7 

5550 

5612 

1.  What  does  Dr.  side  of  Cash  acc't  show  ? 

2.  What  does  the  Cr.  side  show  ? 

3.  What  does  the  difference  represent  ? 

4.  How  does  it  close  ? 

5.  How  will  it  stand  if  all  your  money  is 
paid  out  ? 

6.  Can  it  ever  close  "  To  Balance  ? " 


1.  All  Cash  received. 

2.  All  Cash  paid  out. 

3.  The  Cash  on  hand. 

4.  Always  "By  Balance."    Rule  2,  p.  41. 

5.  Even,  or  self-closed. 

6.  No ;  I  cannot  pay  out  more  money  than 
I  receive. 


*  See  Ques.  1  and  2,  Park  Bro.  &  Co.  acc't,  p.  15. 
43 


SET  II.— DOUBLE  ENTRY  LEDGER. 

Note  on  Closing  Cash  Account.— As  we  cannot  close  Stock  acc't  first,  it  must  be  left  open 
until  you  get  all  others  closed,  except  Balance.  Cash  acc't  being  next  in  order  on  the  Ledger, 
you  proceed  to  close  it.  Add  the  Dr.  and  Cr.  sides,  Inserting  the  amount  in  pencil  figures  to 
the  left  of  the  folio  columns,  as  shown  by  the  small  figures  in  the  preceding  account.  Deduct 
the  lesser  from  the  greater  amount,  and  the  remainder  is  the  balance  of  Cash  on  hand.  As 
you  are  making  up  a  list  of  your  eff'ects  and  liabilities  in  the  Balance  acc't,  and  this  balance  of 
cash  on  hand— f  5550. 75— is  part  of  your  effects,  you  therefore  make  an  entry  on  the  Cr.  side  of 
your  Cash  acc't  to  take  it  there.  Enter  in  red  ink,  and  to  show  where  it  is  taken  to,  explain  it 
thus:  "Mar.  |  31  j  By  Balance,  -  -  fol.  |  7  |  5550  |  75."  This  gives  your  reason  for  making  a 
credit  in  the  Cash  acc't  when  no  money  is  paid  out,  and  the  explanation  given  is  equivalent  to 
paying:  On  Mar.  31 1  took  to  Balance  acc't  on  fol.  7  $5550.75  to  assist  in  making  up  a  complete 
list  of  my  effects  and  liabilities.  The  entry  is  in  red  ink,  because  it  is  only  bori'owed,  and  is 
entered  thus  conspicuously  that  its  return  cannot  easily  be  overlooked  and  your  books  thrown 
out  of  balance.  Use  red  ink  for  making  balance  entries  and  ruling  purposes  only.  Draw  a 
footing  line  first  under  the  longest  column,  and  then,  without  lifting  or  changing  your  ruler, 
draw  another  across  the  dollar  and  cent  columns  opposite.  Care  must  be  taken  not  to  get  one 
footing  line  an  inch  or  so  higher  up  the  page  than  the  other.  Insert  the  footings  belatM  the 
footing  lines,  and  one  line  below  the  footings,  draw  the  closing  lines,  which  consist  of  double 
lines,  across  the  dollar  and  cent  columns,  and  a  short  line  in  the  left  of  each  explanation 
column.  The  amount  of  cash  this  account  shows  you  to  have  must  be  taken  to  the  Dr.  side  of 
the  Balance  acc't,  as  that  is  the  side  on  which  the  list  of  effects  is  made  up.  In  the  Balance 
acc't  you  must  give  the  name  of  the  account  from  which  this  effect  was  taken;  thus, 
"Mar.  I  31  I  To  Cash,  -  -  fol.  |  1."  Now  turn  to  the  Cash  acc't,  and  bring  down  on  the  Dr. 
side  the  amount— $5550.75 — which  you  borrowed  to  help  make  up  the  Balance  acc't. 

This  completes  the  closing  of  Cash,  and  is  the  first  step  taken  in  closing  the  Ledger.  Notice 
that  the  standing  or  showing  of  it  has  not  been  changed.  The  Dr.  side,  which  was  the  largest 
before  closing,  is  the  largest  after  closing. 


(Purchases)  MDSE.  (Property)  ACCOUNT  (Sales). 


1875. 
Jan. 


Mar. 


5  :To  H.  K.  Thnrber  &  Co.  - 


"  Howell,  Barr  &  Co. 

2100. 

"  Profit  and  Loss, 


fol, 


':  1875. 

1 

2 

1110 

Jan. 

25 

2 

990 

Feb. 

1 
22 

6 

260 

80 

Mar. 

It 

10 
17 
24 

23G0 

By  Cash, 

"  T.  G.  Stewart  &  Co.  - 
"  Bills  Receivable,    -    - 

"  Sundries, 

"  Cash,      

"  Bills  Receivable,    -    - 

2360.80 
2100. 
260.80 


2 

264 

3 

528 

3 

536 

4 

773 

5 

75 

5 

184 

2360 



80 


1.  What  does  the  Dr.  side  of  the  Mdse.  acc't 
show? 

2.  What  does  the  Cr.  side  show  ? 

3.  To  what  class  of  accounts  does  it  belong  ? 
4  flow  does  it  close  if  all  goods  are  sold,  as 

is  now  the  case  ? 


1.  The  cost  and  charges  of  all  goods  bought 
to  sell  again. 

2.  All  sales. 

3.  Property  acc't. 

4.  As  directed  by  Rule  2,  p.  41  —  To  or  By 
Profit  and  Loss. 


44 


SET  II.— DOUBLE  ENTRY  LEDGER. 

Note  on  Closing  Mdse.  Account. — Rules  2  and  3  require  you  to  close  all  accounts  that  exhibit 
gain  or  loss  into  the  Profit  and  Loss  acc't.  See  p.  41.  Consider  if  this  account  shows  either. 
If  the  Dr.  side  shows  that  you  bought  $2100  worth  of  goods,  and  the  Cr.  side  shows  that  you 
Bold  the  same  for  $23G0.80,  the  increase  of  $260.80  must  be  gain.  If  you  are  making  up  a  list 
of  your  losses  and  gains  in  the  Profit  and  Loss  acc't,  the  list  will  not  be  complete  without  this 
gain  is  added,  and  therefore  the  Rules  on  p.  41  require  it  to  be  closed  into  that  account.  The 
Mdse.  acc't  has  been  kept  to  show  what  has  been  made  on  your  sales,  and,  as  stated  above,  it 
has  served  your  purpose.  To  take  the  gain  to  the  Profit  and  Loss  acc't,  the  closing  entry  must 
be  made  on  the  lesser  side  of  the  acc't,  which,  in  this  case,  is  the  Dr.,  and  to  explain,  write, 
"  Mar.  I  31  I  To  Profit  and  Loss,  -  -  fol.  i  6  |  200  |  80."  Draw  footing  and  closing  lines.  Turn 
to  the  Profit  and  Loss  acc't,  and  stop  to  think  on  which  side  of  it  the  gain  must  be  entered. 
As  all  gains  are  taken  to  the  Cr.  side,  enter  the  amount— $260.80,  and  explain  it  thus: 
"Mar.  I  31  I  By  Mdse.  -  -  fol.  |  2,"  to  show  what  it  is  and  where  obtained.  Tou  have  no 
Balance  to  bring  down,  as  in  the  Cash  accH.  As  you  go  on  with  the  business,  use  the  Mdse. 
acc't,  without  making  a  new  heading,  and  keep  it  for  another  period  to  show  your  profits. 

(Notes  received)  BILLrS  (Property)  RECEIVABLiE  (Notes  given  up). 


Apr. 


ToBal.  bro't  down. 


1875. 

1 

inoo 

iFeb. 

27 

a 

536 

80 

Mar. 

81 

4 

500 

5 

184 

80 
80 

2220 

1220 

By  Cash,      -    - 
''  Balance^    - 


fol. 


1000 

1220 


2220 


80 


1.  What  does  the  Dr.  side  of  Bills  Rec.  acc't 
Bhow? 

2.  '^hat  does  the  Cr.  side  show  ? 

3.  How  will  it  stand  when  all  are  given  up  ? 

4.  What  class  of  accounts  does  it  belong  to, 
and  how  does  it  close  ? 


1.  Notes  (or  other  obligations  on  paper)  of 
others  received. 

2.  Notes  that  have  been  paid  and  given  up. 

3.  Even,  or  self-balanced. 

4.  It  is  a  property  acc't,  and  closes  "  By  Bal- 
ance," if  I  have  any  notes  on  hand  unpaid. 


Mte.  This  account  is  closed  as  directed  by  the  second  part  of  Rule  2,  p.  41.  The  difference 
between  the  Dr.  and  Cr.  sides  shows  the  notes  remaining  on  hand  unpaid,  and,  as  directed  by 
the  Rule,  you  credit  the  account  "By  Balance,  fol.  7,"  for  the  difference,  and  draw  closing  and 
footing  lines,  as  usual ;  after  which,  the  amount  is  carried  to  the  Dr.  side  of  Balance  acc't,  and 
there  explained,  "  Mar.  |  31  |  To  Bills  Rec.  -  -  fol.  |  3."  Then  return  to  Bills  Rec.  acc't,  and 
bring  the  Balance  down  on  the  side  opposite  your  red  ink  entry.  Abbreviate  it,  as  shown 
above.  This  account  is  always  debited  and  credited  with  the  actual  amount  named  in  the  ob- 
ligation, and  any  gain  or  loss  in  receiving  or  delivering  it  is  recorded  at  the  time  in  some  other 
account.  The  Cr.  side  of  this  account  must  not  be  made  to  show  that  you  collected  more  notes 
than  you  held.  Where  one  side  of  an  account  is  longer  than  another,  the  blank  space  on  the 
short  side  is  filled  with  a  short  red  line,  opposite  the  footing  line,  as  shown  above. 

45 


J)r,        (My  notes  taken  up)  BILLS  (Special)  PAYABLE  (My  notes  given  out>         Ci\ 


1875. 
Mar. 


To  Balance,  • 


fd. 


1875. 
Mar. 


By  Howell,  Barr  &  Co.    - 


Apr.   1  By  Bal.  bro't  down, 


990 


1.  What  does  the  Cr.  side  of  Bills  Payable 
acc't  show  ? 

2.  What  does  the  Dr.  side  show  ? 

3.  How  will  it  stand  when  all  notes  are  paid  ? 

4.  How  will  it  close  if  you  still  owe  some- 
thing on  your  notes  ? 

5.  Can  it  ever  close  "  By  Balance  ?  " 


1.  All  obligations  on  paper  given  out. 

2.  AU  that  I  have  paid  and  taken  up. 

3.  Even,  or  self-balanced. 

4.  To  Balance,  for  tho  difference  between 
the  Dr.  and  Cr.  sides. 

5.  No ;  for  I  would  not  pay  more  notes  than 
I  gave. 


Note  on  Closing.— This  account  is  closed  according  to  Rule  5,  p.  41,  and  as  it  shows  the  exact 
face  value  of  all  notes  or  other  obligations  on  paper  held  by  others  against  you,  we  ascertain 
from  it  that  you  owe  $990  on  a  note.  Close  it  "  To  Balance,"  as  directed  by  Rule,  and  carry 
the  amount  to  the  Cr.  side  of  Balance  acc't,  where  you  are  making  up  a  list  of  what  you  owe. 
Turn  back  to  Bills  Payable,  and  bring  down  the  balance  to  the  Cr.  side.  Notice  that  the 
"Bal.  bro't  down"  is  always  on  the  side  opposite  your  closing  or  red  ink  entry,  and  remember 
that  the  entry  you  made  to  close  the  account  is  only  a  temporary  one,  to  assist  you  in  making 
up  your  Balance  acc't.  You  charged  Bills  Payable  with  $990  for  that  purpose,  and  not  because 
you  paid  the  note.  Therefore,  you  re-open  the  account,  and  make  it  show  by  the  "Bal.  bro't 
down  "  that  you  still  owe  a  note  for  |990.  You  must  not  think  closing  an  account  is  useless 
work  because  the  account  is  unchanged  when  re-opened  by  bringing  down  the  balance.  Clos- 
ing  the  Ledger  at  regular  intervals  is  necessary  to  secure  accuracy,  and  to  learn  your  gains  oi 
losses,  and  closing  the  accounts  is  recording  plainly  for  future  reference  that  they  have  been 
verified  up  to  date  of  closing.  As  you  have  nothing  to  add,  footing  lines  are  not  needed,  so  you 
draw  the  closing  lines  on  the  next  line  below  the  figures. 

(What  they  owe  me)  BELT  (Personal)  &  CILLEY  (Wliat  1  owe  them). 


1875. 

Mar.  SI  To  Balance, 


fol.  7       200 


Jan.    1  By  Stock, 


1875. 


Apr.   1  By  Bal.  bro't  down,     -    - 


200 


1.  What  do  the  Dr.  and  Cr.  sides  of  Belt  &  1.  The  Dr.  side  shows  what  they  owe  me, 
Cilley's  acc't  show  ?  and  the  Cr.  side  what  I  owe  them. 

2.  What  class  of  accounts  does  it  belong  to  ?        2.  Personal. 

3.  How  do  all  personal  accounts  close  ?  3.  Either  To  or  By  Balance.    Rule  1,  p.  41. 

JVote  on  Closing..— Yon  owe  Belt  &  Cilley  $200,  which,  according  to  Rule  1,  must  be  closed 
into  Balance.  As  the  Dr.  side  is  the  smallest,  you  debit  the  account  with  $200,  giving,  as 
usual,  the  date  of  closing  and  the  explanation,  "To  Balance,  fol.  7"— all  in  red.  Turn  to  the 
Balance  acc't  and  enter  the  am't  and  the  explanation  on  the  Cr.  side.  When  a  Balance  entry  in 
red  is  made  on  the  Dr.  side  of  any  acc't,  it  is  always  taken  to  the  opposite  or  Cr.  side  of  Bal. 
acc't.  Turn  to  Belt  &  Cilley's  acc't  and  re-open  it  so  as  to  show  that  the  red  ink  entry  did 
not  pay  the  am't  you  owe  them.  This  is  done  by  bringing  down  the  balance  on  the  Cr.  side 
of  the  acc't  in  the  regular  way,  as  shown  above.    Never  write  "  Bal.  bro't  down  "  in  red  ink. 

46 


Dr,  (My  acc'tagst.  them)  H.  K.  (Personal)  THURBER  &  CO.  (Their  acc't  agst.  me)  Cr. 


1875. 
Mar. 


To  Balance. 


fd. 


1110 


1875. 
Jan. 


Apr. 


By  Mdse. 


1  By  Bal.  bro't  down, 


1110 


1110 


1.  What  do  the  Dr.  and  Cr.  sides  of  H.  K. 
Thurber  &  Co.'s  account  represent,  and  what 
class  of  accounts  docs  it  belong  to  ? 

2.  How  do  all  personal  acc'ts  close  ? 

3.  What  is  the  reason  for  the  Rule  ? 


1.  The  Dr.  side  shows  my  account  ajrainst 
them,  and  the  Cr,  side  their  account  against 
me,  and  it  is  classed  as  a  personal  acc't. 

2.  To  or  By  Balance,  as  in  Rule  1,  p.  41. 

3.  Personal  acc'ts  either  show  what  others 
owe  me  or  what  I  owe  others,  and  in  either 
case  must  be  taken  to  the  Balance  acc't. 

Note.  Accounts  of  Belt  &  Cilley,  Thurber  &  Co.,  Howell,  Barr  &  Co.,  Stewart  &  Co.,  and 
Bailey  all  belong  to  the  class  called  Personal  acc'ts. 

Note  on  Closing.— Where  there  is  nothing  to  add  in  an  acc't,  draw  regular  closing  lines  one 
line  below  the  figures,  i.  e.,  a  double  red  line  across  the  money  columns,  and  a  short  line,  called 
a  "blank,"  in  the  left  corner  of  each  explanation  column,  to  fill  the  blank  space  there.  Draw 
the  lines  across  the  dollar  and  cent  columns  without  lifting  the  pen. 

(What  I  pay  them)  HOWELL,  (Persona!)  BARR  &  CO.  (What  I  buy  of  them) 


1875. 

Mar.   1  To  Bills  Payable, 


-    -    4 


1875. 

Jan.  11  By  Mdse. 


Note.  You  settled  with  this  firm,  and  as  the  sides  of  their  acc't  balanced,  it  required  only 
the  usual  niling  to  close  it.  Closing  an  acc't  when  settled,  records  the  adjustment  to  that  date 
in  a  way  that  obviates  the  necessity  of  referring  to  it  when  making  a  future  settlement,  thus 
saving  much  labor  in  examining  items  that  have  no  bearing  on  the  matter. 

(^Yhat  1  sell  them)  T.  G.   (Personal)  STEWART  &  CO.  (What  they  pay  me) 


1875. 

Feb.   1  To  Mdse. 3 


Apr.   1  To  Bal.  bro't  down, 


1875.      I 

Mar.  31  To  Balance, 


fd.  7 


528\ 


1.  According  to  Rule  1,  p.  41,  To  or  By  Bal. 

2.  By  Balance,  as  it  takes  a  Cr.  to  close  it. 

3.  It  is  a  Cr.  here,  and  must  be  a  Dr.  there. 


f .  How  do  all  personal  acc'ts  close  ? 

2,  How  will  Stewart  &  Co.'s  close  if  the  Dr. 
side  is  largest  ? 

3.  To  which  side  of  Balance  acc't  is  the  am't 
taken  ? 

Note  on  Closing.— The  closing  entry  is  dated  Mar.  31,  but  the  Balance,  which  is  bro't  do\^Ti 
immediately,  is  always  dated  the  next  day.  Notice  above  that  the  amount  bro't  down  is  dated 
April  1.  It  is  customary  to  date  the  Balances  bro't  down  one  day  ahead,  as  it  saves  the  trouble 
of  writing  "  April "  after  the  "  Bal.  bro't  down."  We  have  closed  all  the  Personal  accounts,  in 
order  that  the  student  may  not  be  confused  by  exceptions  to  a  Rule  until  he  fully  understands 
the  Rule  itself.    In  Sets  III.  and  IV.  we  show  that  this  need  not  be  done. 

47 


Dl\  (When  I  gel  out  of  his  debt)  ROBT.  (Persona!)  BAILEY.  (When  I  get  into  his  debt)  Cr, 


1875. 

Mar. 


To  Cash, 


50 


1875. 
Mar. 


31  By  Profit  and  Loss, 


50 


Note.  Both  Dr.  and  Cr.  sides  are  equal,  and  only  require  closing  lines  to  mark  the  settle 
ment.    Kefer  to  Howell,  Barr  &  Co.  acc't,  p.  47. 


(All  expenses  and 


PROFIT  AJ^jy  LOSS.     (Ml  gains) 


1875. 

Feb. 

10 

Mar. 

31 

To  Cash,    -    -    -    - 
K.  Bailey,      -    - 

61  25 

Stock  (net  gain). 


fol. 


199 


260 


1875, 
Mar. 


By  Mdse. 


fol. 

Whole  gain,  260.80 
Whole  loss,  61.25 
Net  gain,       139.55 


80 


1.  What  does  the  Dr.  side  of  Profit  and  Loss 
show? 

2.  What  does  the  Cr.  side  show  f 

3.  What  does  the  difierence  represent  ? 

4.  Which  of  the  closing  Rules  on  p.  41  ap- 
plies ? 

5.  Why  close  this  account  into  Stock  instead 
of  Balance  acc't  ? 

6.  When  do  you  close  this  account? 

7.  Why  delay  the  closing  until  the  last  ? 


1.  All  my  expenses  and  losses. 

2.  All  my  gains. 

3.  Either  my  net  gain  or  my  net  loss. 

4.  KHle4. 

5.  The  profits  of  the  business  belong  to  me, 
and  must  go  to  my  credit  in  Stock  acc't. 

6.  Not  until  all  other  accounts,  except  Stock 
and  Balance,  are  closed. 

7.  I  must  keep  it  open  to  receive  any  gains 
or  losses  from  other  accounts  on  my  Ledger. 


Note  on  Closing .—VTO&t  and  Loss  acc't  is  the  record  of  your  gains  and  losses  from  the  time 
of  one  Ledger  closing  to  another.  In  place  of  debiting  and  crediting  all  losses  and  gains  to 
your  own  account  (Stock),  where  they  would  be  entangled  with  other  items,  you  keep  them  in 
this  special  account,  where  at  closing  time  you  sum  them  up,  and,  as  shown  above,  ascertain 
your  net  gain,  which  is  taken  to  the  Stock  acc't,  and  the  footing  and  closing  lines  are  then 
drawn  in  this  account.  You  have  nothing  to  bring  down,  as  the  gain  has  been  carried  to  your 
own  acc't  (Stock)  and  absorbed  by  it.  Balance  entries  are  only  borrowed,  and  when  the  acc't 
from  which  ai\  entry  is  borrowed  is  re-opened,  the  amount  must  be  returned  to  make  it  show 
the  same  as  it  did  before  closing;  but  transfers  to  Profit  and  Loss  are  permanent— there  is  no 
return,  as  the  gain  finally  goes  to  your  acc't  as  an  increase  of  capital.  You  continue  this  acc't 
under  the  same  heading  by  posting  any  debits  or  credits  you  may  have,  immediately  under  tho 
closing  lines.    The  same  heading  will  answer  as  long  as  there  is  space  under  it. 

Various  explanations  have  been  repeated  in  modified  form  throughout  this  set.  This  has 
been  done  because  an  explanation  which  is  readily  understood  by  one  learner  may  be  difficult 
of  comprehension  by  another.  Our  experience  is  that  the  pupil  beginning  the  study  of  book- 
keeping requires,  at  the  outset  at  least,  all  the  instruction  we  have  given.  The  experienced 
teacher  will  quickly  appreciate  the  pains  we  have  taken  to  simplify  the  work. 

48 


{Elffectsy 
Dr.    (AH  that  I  am  worth)    BAL.AIS'CE  ACCOUNT. 


(Liabilities)  7 

(What  my  concern  owes)     Cv, 


1875. 
Mar. 


To  Cash, fol 

''  Bills  Receivable,  -   " 
"  T.  G.  Stewart  &  Co.  " 

7299.55 
2300. 


Net  cap.,  4999.55 


1 

3 
5 

5.550 
1220 

528 

,5 
80 

1875. 
Mar. 

31 

11 

7299 

55 

By  Bills  Payable,  -  -  fol, 
•'  Belt&Cilley,  -  -  " 
"  H.K.Thurber«feCo." 

230O. 

"  Stock  (net  cap.),    -   " 


990 
200 
1110 

4999 


55 


7299  55 


1.  What  is  transferred  to  the  Dr.  side  of 
Balance  ? 

2.  What  to  the  Cr.  side  ? 

3.  What  does  the  difference  between  Dr.  and 
Cr.  sides  show  ? 

4.  How  and  when  is  it  closed? 


1.  All  my  property  and  debts  due  me. 


2.  All  debts  that  I  owe. 

3.  My  net  capital,  unless  I  owe  more  than  I 
can  pay. 

4.  The  transfer  from  Stock  makes  the  sides 
equal,  and  it  is  the  last  account  closed. 

Note  on  Closing.— This  account  was  opened  on  Mar.  31  for  the  purpose  of  concentrating  and 
recording  all  your  effects  and  liabilities  at  that  date.  The  Stock  acc't  will  show  the  net  amount 
you  are  worth,  but  gives  no  details.  The  Balance  acc't  does.  Examine  the  acc't  and  see  if  it 
does  not  show  how  much  Cash  you  have,  the  amount  due  on  Bills  Receivable,  the  amount  due 
you  on  book  acc't,  and  by  whom ;  and  on  the  Cr.  side,  what  you  owe  on  notes,  on  book  acc'ts, 
and  to  whom  you  owe  it.  Both  Stock  and  Balance  showing  the  same  result  (that  is,  the  differ- 
ence between  the  two  sides  of  each  of  the  accounts  showing  the  net  amount  you  are  worth,  or 
your  net  capital,  as  it  is  usually  termed),  they  must  show  the  same  amount,  if  your  work  is  cor- 
rect. Before  the  closing  entry  is  made  in  ink,  see  that  the  balance  of  the  Stock  acc't  will  ex- 
actly close  the  one  above. 

PROOF  SHEET,  March  31,  1875.      Dr.        Cr. 


Stock,  ----- 

Cash, 

Mdse.  ----- 
Bills  Receivable,  - 
Bills  Payable.  -  - 
Belt  &  Cilley,  -  - 
H.  K.  Thurber  &  Co. 
T.  G.  Stewart  &  Co. 
Profit  and  Loss,  -    - 


200 

5000 

i   5612 

61 

25 

2100 

2,360 

80 

2220 

80 

1000 
990 
200 

1110 

528 

61 

25 

10722 

05 

10722 

05 

Note.  If  the  debits  and  credits  are  not  equal,  your  books  will  not  close— a  fact  that  will  re- 
main undiscovered  until  you  are  about  to  close  the  last  account.  T©  determine  whether  your 
debits  and  credits  are  equal  before  attempting  to  close  your  books,  a  list  like  the  above  must 
be  made  up  on  a  loose  sheet  of  bill  paper,  which  will  embrace  all  the  accounts  that  remain  open 
on  your  Ledger.  Here  we  only  take  off  a  proof  sheet  previous  to  closing  the  Ledger,  but  in 
business,  to  get  timely  notice  of  error,  one  should  be  taken  off  each  month.  If  the  debits  and 
credits  do  not  agree,  it  is  evident  you  have  made  an  error  somewhere,  which  must  be  found 
and  rectified  at  once.  See  ^  1,  p.  74.  All  closing  entries  bear  the  date  of  the  proof  sheet,  viz., 
March  31.    See  ^  10,  p.  40. 

D  49 


SET  II.— DOUBLE  ENTRY  BOOK-KEEPING. 

QUESTIONS  FOR  REVIEW. 

The  pupil  should  be  required  to  write  the  answers  to  the  following  questions  : 

Ques.  1.  What  is  the  diflference  between  Single  and  Double  Entry  Book-keeping  ? 

2.  What  books  are  used  in  Double  Entry  ? 

3.  What  is  the  Day  Book  used  for  ? 
Jf.,  What  is  the  Journal  used  for  ? 

5.  What  is  the  Ledger  used  for? 

6.  Repeat  the  Rules  for  Journalizing  ? 

7.  What  is  the  diflference  between  a  Bill  Receivable  and  a  Bill  Payable  ? 

8.  Where  is  a  transaction  generally  first  recorded  ? 

9.  Then  what  book  is  it  taken  to  ? 

10.  What  is  the  last  book  into  which  it  is  condensed  ? 

11.  After  posting  the  Journal  to  the  Ledger,  what  do  you  do  next  ? 

12.  After  checking,  what  ? 

13.  Repeat  the  Rules  for  closing  the  Ledger  ? 
llf.  When  do  you  use  red  ink  in  the  Ledger  ? 

15.  What  does/<?^.  or/,  mean  when  attached  to  an  entry  in  the  Ledger? 
IG.  What  is  the  "Proof  Sheet"  for? 

n.  If  your  debits  and  credits  are  not  equal  in  am't  on  the  **  Proof  Sheet," 
will  your  books  close  ? 

18.  What  is  the  object  of  closing  the  Ledger? 

19.  What  account  receives  all  your  gains  and  losses  ? 

20.  In  what  account  do  you  make  up  a  list  of  your  property  and  debts 

due  you  ? 

21.  In  what  account  do  you  make  up  a  list  of  the  debts  you  owe  ? 

22.  W^hat  was  the  net  capital  at  the  time  your  books  were  closed,  and  what 

account  shows  it  ? 

23.  What  was  your  net  gain,  and  what  account  shows  it  ? 
2Jf..  How  much  Mdse.  did  you  buy  ? 

25.  What  did  you  sell  it  for? 

26.  How  much  profit  did  you  realize  on  the  Mdse.  ? 

27.  How  much  Cash  did  you  receive  ?    How  much  did  you  pay  out  ? 

28.  How  much  Cash  was  on  hand  when  your  books  were  closed  ? 

29.  What  amount  of  Bills  Receivable  had  you  at  time  of  closing  ? 

30.  How  much  do  you  owe  on  your  notes  ? 

31.  What  is  the  total  amount  of  your  "  Eflfects  ?  "     Of  your  "  Liabilities  ?  " 

32.  What  acc't  will  show  in  detail  what  you  are  worth  and  what  you  owe  ? 

50 


SET  III— DOUBLE  ENTRY  BOOK-KEEPING. 

INTRODUCING    AND    ILLUSTRATING    THE   USE    OF  THE    INVOICE 

BOOK,  SALES  BOOK,  CASH  BOOK,  AND  BILL  BOOKS,  AS 

USED  AND  KEPT  IN  INDIVIDUAL  BUSINESS. 

RULES   FOR   JOURNALIZING,  WITH   EXERCISES   SHOWING   THEIR 
APPLICATION— CLASSIFICATION  OF  ACCOUNTS- 
DIRECTIONS  TO  TEACHERS,  ETC. 

INTRODUCTORY. 

1.  Having  in  tlic  preceding  exercises  and  practice  made  the  learner 
familiar  with  the  Day  Book,  Journal,  and  Ledger,  he  is  now  ready  to 
have  his  attention  directed  to  the  use  of  auxiliary  books. 

2.  In  Set  II.  all  transactions  were  entered  on  the  Day  Book ;  but 
this  plan  will  only  answer  for  a  small  or  limited  business,  in  which  the 
transactions  are  few,  and  can  be  entered  by  one  person.  In  any  large 
business  other  books  beside  the  Day  Book,  Journal,  and  Ledger  must 
be  kept.  Thus,  if  the  purchases  are  numerous,  or  the  invoices  long,  a 
book  called  the  Invoice  Book  must  be  kept ;  if  sales  are  numerous,  and 
most  of  the  bills  long,  a  Sales  Book  must  be  kept.  To  enable  the 
book-keeper  to  balance  his  cash  as  often  as  necessary,  a  book  called  the 
Cash  Book  is  kept.  If  many  notes  are  received,  or  many  given,  a  Bill 
Book  is  kept.  These  books  are  called  auxiliary  books,  or  aids  to  the 
Day  Book ;  and  instead  of  the  book-keeper  finding  all  the  transactions 
entered  on  his  Day  Book  for  him  to  journalize  and  post,  he  must  gather 
them  himself  from  the  various  auxiliary  books,  and  make  up  his  Day 
Book  for  each  day's  business. 

3.  Here,  in  the  beginning,  we  desire  to  caution  learners  not  to  think 
that  they  can  make  an  entry  of  any  transaction  that  has  resulted  from 
a  previous  one  without  first  consulting  their  books  to  ascertain  how 
they  entered  the  first  or  previous  transaction  with  the  same  party  or 
property. 

51 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

RULES  FOR  JOURNALIZING, 

WITH    EXERCISES    SHOWING   THE    APPLICATION    OF   THEM. 

The  Day  Book  entries  and  Rules  are  given  on  pages  53  to  66,  and  the 
Journal  entries  on  pages  66  to  Vl. 

DIRECTIONS  TO  TEACHERS  AND  LEARNERS. 

Read  classification  on  page  72,  and  directions  on  page  73. 

Require  the  pupil  to  commit  to  memory  all  Rules  for  journalizing. 

In  journalizing  the  following  Day  Book  entries,  the  pupil  must  not 
look  at  the  Journal  entries  we  have  given  until  after  he  has  made  up  a 
Journal  of  his  own  on  a  loose  sheet  of  paper,  or  on  a  slate.  He  must 
not  attempt  to  make  any  corrections  until  after  the  teacher  has  seen  his 
work.  Any  correction  made  from  the  text-hook  without  notice  to  the 
teacher  deprives  him  of  an  opportunity  to  explain  the  entry 

The  following  exercises  should  be  read  by  the  pupil  before  he  at- 
tempts to  journalize  the  Day  Book  entries  that  are  given  to  show  the 
application  of  each  Rule. 

All  Rules  referred  to  by  number  should  be  examined  as  often  as  re- 
quired, in  order  to  have  the  pupil  follow  them.  With  a  little  practice, 
he  will  become  so  familiar  with  his  Rules  as  to  be  able  to  recite  them 
by  number. 

The  answers  must  be  numbered,  as  in  the  following  pages. 

While  a  pupil  is  giving  close  attention  to  the  wording  of  a  Journal 
entry,  he  is  apt  to  be  a  little  careless  in  extending  the  amounts  into 
the  debit  and  credit  columns.  When  the  teacher  discovers  errors  of 
this  kind,  he  should  notify  the  pupil,  and  direct  him  to  find  and  correct 
them. 

Each  Rule  is  followed  by  a  note  of  explanation,  which  the  pupil 
should  read  carefully,  and  then  refer  to  the  entries  that  follow. 

62 


SET  III.-DOUBLE  ENTRY  BOOK-KEEPING. 

RULES  FOR  JOURNALIZING,  WITH  EXERCISES. 

Wliat  is  the  general  Rule  regulating  tlie  debits  and  credits  ? 
Rule  1.   The  debits  and  credits  of  every  Journal  entry  must  in  amount  be 
equal. 

What  is  the  Rule  for  opening  books  ? 

Rule  2.   The  Stock  account  represents  myself,  and  must  be  debited  for  what 
I  owe,  and  credited  for  what  I  possess. 

EXERCISES  SHOWING  THE  APPLICATION  OF  RULE  3. 

1. 


My  capital,  commencing  the  Grocery  business  this  day,  consists  of 
Cash  in  hand, 


5000 


The  above  is  an  opening  entry  in  the  Day  Book.  Rule  3 — the  Rule  for 
opening  books — directs  you  to  credit  Stock  for  what  you  possess.  The  general 
Rule  for  receiving  and  delivering  property — Rule  5 — requires  you  to  debit 
Cash,  it  having  been  received  into  the  business.  See  that  the  debits  and  credits 
are  equal,  as  required  by  Rule  1. 

Question  2. 


My  effects,  or  capital,  commencing  business  this  day,  consist  of — 

Cash  in  hand, $1000. 

Mdse.  in  store, 1000. 

W.  H.  Sadler  owes  me  on  his  note, 1000 . 


3000 


Rule  2  directs  you  in  making  an  entry  of  the  $3000  capital.  Cash  and  Mdse. 
having  been  received  into  the  business,  must  be  entered  as  directed  by  Rule  5. 
The  amount  due  on  note  must  be  disposed  of  as  directed  by  Rule  5.  Carefully 
note  the  difference  between  Bills  Receivable  and  Bills  Payable.  See  Rules  9 
and  10,  p.  26.  Remember  that  you  must  class  all  notes  received  from  customers 
and  others  as  Bills  Receivable,  and  all  notes  that  you  sign  and  pay  out  as  Bills 
Payable. 

63 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


My  effects,  commencing  "business  tliis  day,  consist  of — 

Cash  in  hand, $1000. 

Mdse.  on  hand  in  store, 2000. 

W.  H.  Sadler  owes  me  on  book  acc't,     -    - 3000 . 

W.  H.  Sadler  owes  me  on  his  note,    .--.-.-.    4000 . 


My  liabilities,  or  debts  owing  by  me,  on  commencing  business,  con- 
sist of — 

Am't  due  R.  P.  Duff  on  my  note, |1000. 

"    R.  P.  Duff  on  book  acc't, 1000. 

"       "    Wm.H.  Duff  on  book  acc't, 1000. 


Enter  the  amount  of  your  effects  as  directed  by  Rule  2.  The  Cash,  Mdse., 
and  Note  received  into  the  business  must  be  entered  as  directed  by  Rule  5. 
For  the  am't  due  on  book  acc't  by  Wm.  H.  Sadler,  Rule  3  will  be  your  guide. 

Enter  the  amount  of  your  liabilities  as  directed  by  Rule  2,  and  the  amount 
you  owe  R.  P.  and  Wm.  H.  Duff  on  book  acc't  as  directed  by  Rule  4.  Rule  5 
directs  how  the  Note  delivered  must  be  entered. 

Question  4. 


My  effects,  commencing  business  this  day,  consists  of — 

Cash  in  hand, 

40  shares  Keystone  Bank  Stock,  @  $50  per  share,       -    -    2000. 
J.  R,  McGinley  owes  me  on  his  bond  and  mortgage,  -    -      900. 


Rule  6  will  enable  you  to  enter  the  Bank  Stock. 
Question  5. 

My  effects,  commencing  business,  consist  of — 

Cash  in  hand, 

Mdse.  on  hand  in  store, 1,100. 

100  shares  German  Insurance  Co.  Stock, 5,000. 

I  own  one-half  the  steamer  Paragon,  worth 15,000. 

I  own  House  and  Lot  No.  49  Fifth  avenue,     -    -    -    -    -15,000. 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

What  is  the  Rule  for  debiting  Personal  accounts  ? 

Rule  3.  When  a  person  gets  into  my  debt,  he  is  debtor  for  the  amount. 
When  I  get  out  of  his  debt,  he  is  debtor  for  what  I  pay  or  cease  to  owe  him. 

Note.  Here  we  have  two  cases  in  which  a  Personal  account  can  be  debited  : 
First,  When  a  person  gets  Mdse.,  or  anything  of  value,  without  immediately 
paying  for  it,  he  gets  into  your  debt,  and,  by  the  Rule,  his  account  must  be 
debited,  or  charged,  with  what  he  gets.  Second,  When  you  pay  him  a  debt 
which  stands  credited  to  his  account  on  the  Ledger,  you  get  out  of  his  debt, 
and  he  must  be  debited,  or  charged,  with  the  amount  you  pay  or  ceas-e'  to  owe 
him. 

EXERCISES  SHOWING  THE  APPLICATION  OF  RULE  3. 

Question  6. 


Sold  J.  J.  De  Han 

80  bush.  Potatoes, @$1.00 


80 


Here  a  sale  is  made,  and  as  no  payment  is  received,  Rule  3  applies,  and 
gives  the  debit.  All  articles  that  you  make  a  business  of  buying  or  selling  are 
grouped  or  classed  under  one  head,  as  Mdse.,  and  must  be  debited  and  credited 
as  directed  by  Rule  5. 

Question  7. 


Gave  John  D.  Williams,  in  settlement  of  his  account,  my  note  dated 
Sept.  10, 1875,  at  60  days,  for - 


600 


By  giving  your  note  you  cease  to  owe  J.  D.  Williams  on  his  book  account, 
and  Rule  3  must  be  applied.    For  the  credit,  apply  Rule  5. 

Question  8. 


Paid  A.  Johnson  Cash  in  full  for  balance  due  him  on  book  acc't,    - 

55 


417 


SET  III.— DOUBLE  ENTEY  BOOK-KEEPING. 


Sold  C.  K.  Garrison 
lOQ  bbls.  Flour, 


@$6,50 


650 


Question  10. 


Gave  Tiios.  C. 
amount  of  - 


Dickson  an  order  on  C.  K.  Garrison   for  Mdse.  to 


60 


You  pay  one  party  and  get  out  of  liis  debt,  but  in  doing  so  get  into  debt  to 
tlie  party  on  whom  your  order  is  given.    Rules  3  and  4  both  apply. 


Question  11. 


Settled  with  Rufus  Dolbear  for  am't  due  him  on  book  acc't,    $1000. 
Less  5  %  discount  allowed  for  cash,   --------        50 . 

Amount  paid  him  in  cash, 


950 


As  it  appears  that  you  "  cease  to  owe  "  Rdfus  Dolbear  $1000  by  paying  him 
in  cash,  Rule  3  must  be  applied.     For  the  $50  which  your  creditor  allows 
as  a  discount,  nothing  was  delivered,  and  Rule  8  will  apply. 


What' is  the  rule  for  crediting  Personal  accounts  ? 

Rule  4.   When  I  get  ivto  his  debt,  he  is  credited  for  the  amount.     When  he 
gets  out  of  my  debt,  he  is  credited  for  what  he  pays  or  ceases  to  owe  me. 

Note.  Here  we  have  two  cases  in  which  a  Personal  account  can  be  credited 
First,  When  you  get  Mdse.,  or  anything  of  value,  from  a  person  without  paying 
for  it  immediately,  you  get  into  his  debt,  and,  by  the  Rule,  his  account  must  bo 
credited  with  what  you  get.  Second,  When  he  pays  you  a  debt  which  stands 
charged  to  his  account  on  the  Ledger,  he  gets  out  of  your  debt,  and  must  be 
cxedited  with  what  he  pays  or  ceases  to  owe  you. 

66 


SET  III.— DOUBLE  ENTKY  BOOK-KEEPINa. 


EXERCISES  SHOWING  THE  APPLICATION  OF  RULE  4. 

Question  12. 


Bo't  of  John  D.  Williams 

100  bbls.  Flour  (St.  Louis  Mills), 


@  $6.00 


600 


In  this  transaction  the  thing  received  must  be  classed  as  Mdse.,  and  disposed 
of  according  to  Rule  5.    You  did  not  pay  for  what  you  bo't,  and  Rule  4  applies. 

Question  13. 


Bo't  of  A.  Johnson 
417  bush.  Barley, 


$1.00 


417 


U. 


Received  of  J.  J.  De  Han,  in  settlement  of  his  acc't. 
Cash  in  full, 


80 


Here  J.  J.  De  Han,  a  customer  who  was  in  your  debt,  pays  the  am't  in  cash. 
Rule  4  applies. 

Question  15. 


Received  of  C.  K.  Garrison,  in  settlement  of  the  balance  due  me. 

Cash, $90. 

His  note  at  30  days, 400. 


490 


Rule  4  applies,  as  C.  K.  Garrison  ceases  to  owe  you  anything  on  book  acc't. 

ion  16. 


Bo't  of  Thos.  C.  Dickson,  for  oflBce  use, 
600  bush.  Coal, 


@10/^. 


60 


As  this  purchase  is  one  of  the  expenses  of  your  business.  Rule  8  will  apply. 

Question  17. 


Bo't  of  Rufus  Dolbear 

25  bbls.  N.  O.  Molasses, 1000  G.,  (a)  70^.  $700. 

3  hhds.  N.  0.  Sugar, 3300  S     @    9/-.     297. 

Drayage, -         3. 

_ 


1000 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINQ. 

Q^^Mion  18. 


The  National  Manufacturing  Co.,  owing  to  serious  losses  in 
business,  cannot  pay  their  debts  in  full,  and  have  compro- 
mised with  me  for  the  amount  due  on  book  acc't  at  75)^  on 
the  dollar,  which  they  now  pay  in  cash, 

The  balance  is  lost,      .-.--, 100. 


400 


The  amount  due  you  by  this  company  was  $400,  but  by  your  agreement  you 
are  to  accept  $300  as  payment  in  full.    As  you  suffer  a  loss.  Rule  8  applies. 

What  is  the  general  Rule  for  receiving  and  delivering  property  ? 
Rule  5.  The  thing  received  is  Dr. 
The  thing  delivered  is  Cr. 

Note.  In  business,  the  things  usually  and  frequently  received  and  delivered 
are  Cash,  Mdse.,  and  Notes.  These  the  book-keeper  must  debit  and  credit 
according  to  Rule. 


EXERCISES  SHOWING  THE  APPLICATION  OF  RULE  5. 
Question  19. 


Bo't  of  W.  H.  Sadler,  for  cash, 
40  kegs  lOd.  Nails,    -    -    - 


@  $3.00 


120 


You  follow  Rule  5  for  both  debit  and  credit.    The  thing  received  is  classed 
as  Mdse. 

Question  SO. 


Paid  my  note  for  $600  in  favor  of  J.  D.  Williams.     Sold  him,  in  part 
payment, 

40  kegs  lOd.  Nails, @$3.50    160. 

Paid  cash  for  the  balance,  -     -     - 440. 


600 


In  this  transaction  you  receive  a  note,  and  deliver  two  things  in  payment  of 
it.    See  Ques.  7,  p.  55,  and  Rules  9  and  10,  p.  20. 

58 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

Question  21. 


Sold  for  Cash 

100  bbls.  Flour  (St.  Louis  Mills), 


@  $6.75 


675 


Sold  D.  R.  Lillibridge 

60  bbls.  Flour  (Risher's  Mills), @  $7.00 

Received  in  payment  bis  note  at  60  days  for  same  amount. 

Refer  to  Rules  9  and  10,  p.  26. 

Question  23. 

Bo't  of  Jobn  Camell 

300  doz.  Brooms, @  $2.50    750. 

Gave  him  in  payment 

D.  R.  Lillibridge's  note  for 420. 

My  own  note  at  60  days  for 330. 


420 


750 


Question  S4.. 


Sold  P.  Duff  &  Sons 

150  doz.  Globe  Patent  Wash  Boards, 


@$2.50    875. 


Received  in  payment 

My  note  in  favor  of  John  Carnell  for 330 . 

Check  on  Keystone  Bank  for 45. 


375 


You  must  remember  that  all  notes  received  are  not  classed  as  Bills  Receivable, 
as  you  may  receive  your  own  note,  which  is  classed  as  Bills  Payable. 

What  is  the  Special  Rule  for  debiting  Property  accounts  ? 
Rule  6.  When  property  becomes  mine,  I  debit  it  for  its  cost  or  value,  and  if 
it  costs  me  anything  afterwards,  I  debit  it  for  that  cost  also. 

I^ote.  If  property  becomes  yours  by  gift  or  legacy,  it  must,  by  the  Rule,  be 
debited  for  its  value,  and  for  all  payments  you  make  on  account  of  it  after  it 
comes  into  your  possession. 

59 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 


EXERCISES  SHOWING  THE  APPLICATION  OF  RULE  6. 

Question  25. 


Bo't  for  Cash 

50  shares  Keystone  Bank  Stock, 


32.50 


3125 


By  Rule  6  yon  are  required  to  open  an  account  for  this  purchase.  In  this 
case  the  value  of  the  property  is  not  considered,  as  the  Rule  requires  you  to 
debit  it  for  what  it  cost. 

ion  26. 


Sold  W.  N.  Riddle 

50  bbls.  Mess  Pork, @  $21.50    1075. 

Received  in  payment 

20  shares  Central  Passenger  Railway  Stock, 


1075 


You  must  keep  an  account  with  this  Stock  to  show  what  it  cost. 
Question  27. 


Received  from  my  grandfather's  estate,  under  his  will, 
House  and  Lot  No.  49  Fifth  Avenue,  valued  at  -     - 


60,000 


You  come  into  possession  of  a  house  that,  being  a  gift,  costs  nothing  ;  but 
Rule  6  requires  you  to  open  and  keep  an  account  with  it  just  the  same  as  if  it 
had  cost  $60,000  in  cash.  Receiving  this  property  into  the  business  increases 
your  capital,  and  Rule  2  applies. 

Question  28. 


Bo't  of  Capt.  R.  J.  Grace  the  steamboat  Post  Boy  for  $37,500. 

Gave  him  in  payment  my  notes  at  60  and  90  days  for  same  am't, 


37,500 


Question  29. 


Paid  cash  for  Taxes  on  house  49  Fifth  Avenue, 
**       "      *'   Repairs  on  steamer  Post  Boy,    -     -     - 
((       i(      <(   Insurance  on  house  49  Fifth  Avenue, 


60 


450. 
900. 


1950 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


What  is  the  Special  Rule  for  crediting  Property  accounts  ? 
Rule  7.  When  property  brings  me  in  anything,  I  credit  it  for  the  amount, 
and  when  it  ceases  to  be  mine,  I  credit  it  for  its  v^ue,  or  what  I  receive  for  it. 

Note.    If  property  is  lost,  destroyed,  or  given  away,  and  the  account  remains 
open  on  your  books,  you  must  credit  it  for  its  value,  and  close  the  account. 

EXERCISES  SHOWING  THE  APPLICATION  OF  RULE  7. 
Question  30. 


Received  of  Chas.  A.  Kehew 

Cash  for  one  quarter's  rent  of  house  49  Fifth  Avenue, 


600 


The  property  that  brings  you  in  this  amount  must,  by  Rule  7,  be  credited. 

Question  31. 


Received  cash  for  Dividend  on  Keystone  Bank  Stock,  -  -  -  $125 . 
"  "  "  "  Cent.  Pass.  R.R.  '*  .  -  .  50. 
"      "   Profits  of  steamer  Post  Boy, 3775. 


3950 


Question  32. 


Sold  E.  N.  Hartshorn 

50  shares  Keystone  Bank  Stock, 
Received  in  payment 

65  shares  People's  Bank  Stock, 


$65.00    3250. 
-    -    @  $50.00 


3250 


Here  you  exchange  property,  and  Rules  6  and  7  both  apply. 
Question  33. 


The  steamer  Post  Boy,  owned  by  me,  and  uninsured,  was  burned  at 
Maysville,  Ky.,  and  is  a  total  loss, 


34,175 


By  the  account  with  this  property,  you  find  the  vessel  has  cost  you  :  For 
purchase  $37,500,  for  repairs  $450,  and  has  brought  you  in  $3775  profits. 
This  makes  your  actual  loss  $34,175  ;  and  when  property  ceases  to  be  yours,  as 
this  does,  the  Rule  (7)  requires  you  to  credit  it  for  its  value,  to  close  an  account 
with  property  you  no  longer  own. 

61 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

Question  34. 


By  tlie  failure  of  the  People's  Bank,  my  stock  in  that  institution  is 
rendered  worthless.  .    -t------    ----.__ 


3250 


When  property  ceases  to  be  yours,  Rule  7  requires  you  to  make  an  entry  to 
credit  the  account  for  its  value,  or  what  you  receive  for  it.     See  Ques.  82. 

When  are  Profit  and  Loss  accounts  debited  and  credited  ? 
Rule  8.  Profit  and  Loss  accounts  are  always  debited  when  I  lose,  and  credited 
when  I  gain. 

Note.  Where  branches  of  the  Profit  and  Loss  account,  such  as  Expense, 
Interest,  or  Commission  are  not  kept,  the  gains  and  losses  are  carried  directly 
to  this  account.     See  remarks  on  Classification  of  accounts,  p.  72. 

EXERCISES  SHOWING  THE  APPLICATION  OF  RULE  8. 

Question  35. 


Lost  by  counterfeit  money  which  was  taken  in  payment  on  a  sale, 
and  now  burned, 


20 


As  you  delivered  or  destroyed  something,  and  received  nothing  for  it.  Rule  8 
must  be  your  guide  for  the  debit,  and  Rule  5  for  the  credit. 

Question  36. 


Donated  to  the  Sufferers  by  the  Flood  in  France 

Cash, $100. 

Mdse. 100. 


200 


Here  you  give  away  $200,  for  which  you  neither  receive  nor  expect  any 
return. 

Question  37. 


Paid  cash  to  Evening  Telegraph  for  advertising  to  date, 


90 


For  this  payment  you  cannot  debit  any  Personal  or  Property  acc't,  because 
no  one  gets  into  your  debt,  and  no  property  has  been  received.  It  is  one  of  the 
expenses  of  carrying  on  a  business. 

62 


SET  III.-DOUBLE  ENTKY  BOOK-KEEPING. 


By  tlie  fire  wliicli  broke  out  in  my  store  yesterday,  I  have  lost  goods 
to  the  value  of - 


1000 


As  the  property  destroyed  produces  you  nothing,  Rule  8  must  apply. 
Question,  39. 


John  Randolph  has  absconded,  and  the  note  which  I  hold  against 
him  is  considered  worthless, ...- 


210 


ion  4-0. 


The  estato  of  Wm.  Simpson  is  bankrupt,  and  my  account  against 
him  is  lost, 


140 


Question  41. 


Discounted  Albert  Rhodes'  note  for  $900. 
Received  net  proceeds  in  cash,  -  -  - 
Discount,  90  days,  at  9  % ,  -    -    -    -    - 


1879.75 
20.25 


900 


You  have  lost  part  of  this  note  in  having  it  discounted. 


Bo't  at  auction 

50  shares  Central  Railroad  Stock,    -    -    -    -    @  $40.00    2000. 

And  sold  the  same  immediately  at  $45.00  per  share,  -    -    2250. 

Received  the  difference  in  cash, 


250 


You  did  not  keep  the  property  long  enough  to  open  an  account  with  it  on 
your  books. 

Question  4^. 


Paid  cash  for  State,  County,  and  City  Taxes  for  1875, 


430 


This  is  another  item  of  expense  in  businesc. 
63 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

The  following  Rules  are  given  without  any  accompanying  exercises  to  show 
their  application.  Those  desiring  to  pursue  the  subject  further  will  find  it 
more  fully  treated  in  "DufE's  Mercantile,  Bank,  and  Railroad  Book-keeping." 

What  is  the  Rule  for  journalizing  Drafts,  Orders,  &c.  ? 

Rule  9.  Credit  a  person  when  you  draw  on  him  on  your  own  account, 
and  debit  him  when  he  draws  on  you  on  his  account. 

Note.  If  a  person  sends  a  draft  or  order  on  you  for  either  goods  or  money, 
you  charge  him,  and  not  the  person  who  presents  the  draft  or  order.  You 
treat  his  draft  or  order  the  same  as  if  he  were  present  himself  and  obtained 
the  goods  or  money,  and  he  treats  your  draft  or  order  on  him  in  the  same  way. 
This  Rule  is  given  to  prevent  you  from  debiting  or  crediting  Bills  Receivable 
or  Bills  Payable  with  every  draft  or  order  drawn  on  you,  or  drawn  by  you  on 
others.  Rules  3  and  4  require  you  to  make  the  same  debits  and  credits  as 
Rule  9  does. 

What  is  the  Rule  for  keeping  an  account  of  goods  consigned  to  you  for  sale 
on  account  of  another  ? 

Rule  10.  I  debit  the  "owner's  sales"  for  all  charges  incurred  while  in  my 
possession,  and  credit  the  same  account  for  what  the  property  sells  for. 

Note.  When  a  person  consigns  you  his  goods  to  sell  on  commission,  he 
expects  you  to  furnish  him  an  account  of  sales,  made  out  in  a  business-like 
manner,  so  as  to  show  all  the  sales,  and  a  list  of  the  charges.  To  make  out 
such  a  statement,  open  an  account  with 

" Sales," 

and  debit  and  credit  it  as  directed  by  Rule  10.  Then  by  deducting  all  charges, 
including  your  commission,  from  the  total  sales,  you  ascertain  the  net  pro- 
ceeds that  must  be  paid  over  to  the  owner. 

What  is  the  Rule  for  keeping  an  account  of  Property  you  ship  or  consign 
to  others  for  sale  on  your  account  ? 

Rule  11.    I  debit  shipment  to for  the  cost  and  charges 

of  the  shipment,  and  credit  the  same  account  for  what  it  brings  me  in. 

Note.  This  Rule  guides  you  in  keeping  an  account  of  goods  or  property 
that  may  be  sent  to  another  market  for  sale.     By  following  tLe  Rule,  the 

64 


SET  III— DOUBLE  ENTRY  BOOK-KEEPINa. 

debit  side  of  the  account  is  made  to  show  the  cost  of  property  and  the  charges 
paid  by  you.  Then  by  crediting  the  account  with  the  net  proceeds  shown  in 
the  Account  Sales  that  the  agent  or  commission  merchant  will  send  you,  the 
credit  side  is  made  to  show  what  it  brings  you  in.  The  difference  between 
the  Dr.  and  Cr.  sides  must  be  gain  or  loss.  Thus,  if  the  Cr.  side  shows  that 
the  shipment  brings  in  more  than  the  cost  per  Dr.  side,  the  difference  is  gain  ; 
but  if  the  Dr.  side  is  the  greater,  the  difference  is  loss,  for  the  showing  then 
would  be  that  the  shipment  cost  more  than  it  brought  you  in. 

JOINT    ACCOUNTS. 

Individuals  and  firms  frequently  speculate  by  purchasing  and  selling  some 
particular  article  on  joint  account,  i.  e.,  each  contributes  a  portion  of  the  pur- 
chase-money, and  receives  a  portion  of  the  profits.  The  person  who  makes  the 
purchases  and  effects  the  sales  is  termed  the  manager.  He  keeps  an  account 
of  the  transactions  in  his  private  books,  under  the  title  of  **  1st  Co.  Sales," 
"2d  Co.  Sales,"  to  distinguish  them  if  he  has  several  on  hand,  and  in  accord- 
ance with  the  following 

Rule  12.  Debit  Sales  in  Co.  for  my  own  share  only  of  the  first  cost  and  for 
the  whole  charges  incurred  while  in  my  possession,  and  credit  the  same  account 
for  the  total  sales. 

The  silent  partners  keep  an  account  of  their  interest  in  the  speculation  by 
following 

Mule  13.  Debit  "Adventure  in  Co."  for  its  cost,  and  credit  it  for  what  it 
brings  in. 

*  Branches  of  any  Personal,  Property,  or  Profit  and  Loss  account  may  be  kept  for  a  specific 
purpose,  but  when  this  is  done,  care  must  be  taken  to  confine  the  debits  and  credits  to  the 
particular  purpose  in  view.  Thus,  if  William  Hay,  a  customer,  sends  me  some  goods  to  sell 
for  him,  I  open  an  account  with  ''  William  Hay's  Sales,"  and  keep  it  according  to  Kule  10.  If 
I  find  it  to  my  advantage  to  send  pai't  of  my  stock  of  Flour  to  Boston,  I  open  an  account  with 
"  Shipment  to  Boston,"  and  keep  it  as  directed  by  Rule  11.  To  find  the  exact  amount  of  ex- 
pense of  carrying  on  my  business,  I  may  open  a  branch  of  the  Profit  and  Loss  account,  and  call 
it  "  Expense  account."  By  debiting  it  with  all  expenses,  it  will  give  the  important  informa- 
tion I  require.  I  may  ascertain  what  is  gained  or  lost  by  interest  by  opening  an  "Interest 
account,"  and  debiting  it  with  all  interest  paid,  and  crediting  it  with  all  interest  received. 

E  65 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 


ANSWERS  TO  PRECEDING  EXERCISES.— JOURNAL  ENTRIES. 


Answer  1. 

Cash  Dr. 

To  Stock, 

— An%wer  2. 

Sundries  Dr.  To  Stock,     -    -    .     . 

Cash, 

Mdse. 

Bills  Receivable, 

■        Answer  3. 

Sundries  Dr.  To  Stock,     .     .    -    . 

Cash, 

Mdse. 

W.  H.  Sadler, 

Bills  Receivable, 

. n      

Stock  Dr.  To  Sundries,     -    -    -    - 
To  Bills  Payable, 

"  R.  P.  Duff, 

"  W.  H.  Duff, 


Dr. 


5000 


1000 
1000 
1000 


1000 

2000 
3000 
4000 


^000 


Cr, 


5000 
8000 

10,000 


1000 
1000 
lOCO 


Note  1.  The  teacher  should  now  direct  the  attention  of  the  learner  to  the 
manner  of  starting  or  beginning  a  Journal  entry,  viz.,  to  write  the  dehit  or 
debits  first.  Take,  for  examples,  Ans.  1,  where  the  entry  begins,  "  Cash  Dr."  ; 
Ans.  2,  where  it  begins,  "  Sundries  Dr."  ;  Ans.  3,  where  the  first  entry  begins, 
"  Sundries  Dr.",  and  the  second  entry,  "  Stock  Dr."  If  there  is  but  one  debit, 
as  in  Ans.  1,  we  can  begin  the  entry  with  its  name  or  title,  but  if  there  are  two 
or  more,  as  in  Ans.  2  and  Ans.  3,  the  entry  must  begin  "  Sundries  Dr.  To." 
The  preposition  "To"  is  used  before  credits  only.     See  foregoing  entries. 

Note  2.  In  a  general  sense,  the  word  "  Sundries"  means  plurality,  as  Sun- 
dry days.  Sundry  persons,  &c.,  but  in  book-keeping  it  signifies  two  or  more 
accounts  Dr.  or  Cr.  Thus,  in  Ans.  3,  it  means  that  four  accounts  which  are 
debited  are  "Dr.  To  Stock";  and  in  the  next  entry  below,  it  means  that 
Stock  is  Dr.  to  the  three  accounts  which  are  credited.  Care  should  be  taken  to 
understand  the  meaning  and  application  of  this  word  in  book-keeping. 

06 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


Sundries  Dr.  To  Stock, 
Cash,  -----. 
Keystone  Bank  Stock, 
Bills  Receivable,     -     - 


Answer  4. 


Answer  5. 


Sundries  Dr.  To  Stock,     -     -     - 

Cash, 

Mdse. 

German  Insurance  Co,  Stock,     - 
Steamer  Paragon  (my  half), 
House  and  Lot,  49  Fifth  Avenue, 


J.  J.  De  Han,  Dr. 
To  Mdse.   -     -     - 


Answer  6. 


John  D.  Williams,  Dr. 
To  Bills  Payable,     -     ■ 


Answer  7. 


Answer  8. 


A.  Johnson,  Dr. 
To  Cash,     -     - 


C.  K.  Garrison,  Dr. 
To  Mdse.    -    -     - 


Answer  9. 


Thos.  C.  Dickson,  Dr. 
To  C.  K.  Garrison. 


Ansicer  10. 


Answer  11. 


Rufus  Dolbear,  Dr.  To  Sunds. 

To  Cash,    -     - 

**  Profit  and  Loss,     -    -    - 


67 


Dr, 

Cr, 

100 

2000 

900 

3000 

900 

1100 

5000 

15,000 

15,000 

37,000 

•  80 

80 

600 

600 

417 

417 

650 

650 

60 

60 

1000 

950 
60 

SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


Answer  12. 


Mdse.  Dr.  -     -     -     - 
To  John  D.  Williams, 


NoU.  —  Your  Journal  entry,  when  interpreted  by  tlie 
Rules,  will,  if  correct,  always  show  the  same  as  the  Day 
Book  entry,  but  does  not  give  particulars.  For  instance, 
your  Journal  entry  of  the  above  will  show  that  you  re- 
ceived Mdse. ,  and  that  you  get  into  J.  D.  Williams'  debt 
for  $600,  which  is  exactly  what  your  Day  Book  entry 
shows. 

Answer  13.       

Mdse.  Dr. 

To  A.  Johnson, 

Answer  I4.       

Cash  Dr. 

To  J.  J.  De  Han, 

Answer  15.       

Sundries  Dr.  To  C.  K.  Garrison, 

Cash, 

Bills  Receivable, 

Answer  16.       

Profit  and  Loss,  Dr. 

To  Thos.  C.  Dickson, 

Answer  17.       

Mdse.  Dr. 

To  Rufus  Dolbear, 

^- Answer  18.       

Sundries  Dr.  To  National  Manufacturing  Co. 

Cash,     -     

Profit  and  Loss,  ---------     -----    - 

Answer  19.       

Mdse.  Dr. 

To  Cash, 

68 


nr. 


600 


417 


80 


90 
400 


60 


1000 


300 
100 


120 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


Answer  SO. 

Bills  Payable  Dr.  To  Sundries,  -    - 

ToMdse. 

"  Cash, 

Answer  21. 

Cash  Dr. 

To  Mdse.        - 

Answer  22. 

Bills  Receivable  Dr. 

ToMdse. 

Answer  23. 

Mdse.  Dr.  To  Sundries,    -     -     -     - 

To  Bills  Receivable, 

"  Bills  Payable, 

Answer  24. 

Sundries  Dr.  To  Mdse.      -     -     -     - 

Bills  Payable, 

Cash, .    .     . 


Note.  We  cannot  conveniently  keep  an  account  with 
each  article  we  deal  in,  and  for  that  reason  all  articles 
that  we  buy  to  sell  again  are  grouped  or  classed  under 
one  head  or  title,  as  Mdse.  All  notes  that  are  signed  by 
and  received  from  others  are  classed  as  "  Bills  Receivable," 
and  all  notes  that  we  sign  and  pay  out  are  classed  as 
**  Bills  Payable."  All  sight  drafts  and  bank  checks  are 
considered  cash.  Teachers  should  be  particular  to  have 
the  pupils  understand  this. 


Answer  25..      — 

Keystone  Bank  Stock,  Dr. 

To  Cash, 

Answer  26.       — 

Central  Passenger  Railroad  Stock,  Dr.   - 

ToMdse. 

69 


Dr. 


600 


675 


420 


750 


330 
45 


3125 


1075 


Cr 


160 
440 


675 


420 


420 
330 


375 


3125 


1075 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 

Answer  27.       

House  and  Lot,  49  Fifth  Ave.  Dr.  -     -    - 

To  Stock, 

Answer  28.       

Steamer  Post  Boy,  Dr. 

To  Bills  Payable, - 

Answer  29.       

Sundries  Dr.  To  Cash, 

House  and  Lot,  49  Fifth  Ave. 

Steamer  Post  Boy, 

Answer  SO.       

Cash  Dr. - 

To  House  and  Lot,  49  FiftJi  Ave. 

Answer  31.       

Cash  Dr.  To  Sundries, 

To  Keystone  Bank  Stock, 

"  Central  Pass.  R.R.  Stock, 

**  Steamer  Post  Boy, 

Answer  32.       

People's  Bank  Stock,  Dr. 

To  Keystone  Bank  Stock,      ----- 

. Answer  33.       

Profit  and  Loss,  Dr. 

To  Steamer  Post  Boy, 

. Answer  34.       

Profit  and  Loss,  Dr. 

To  People's  Bank  Stock, 

Answer  85.       

Profit  and  Loss,  Dr. 

To  Cash, 

Answer  36.       

Profit  and  Loss  Dr.  To  Sunds. .    .    . 

To  Cash,    ----- 

"  Mdse. 

10 


Dr. 


60,000 


37,500 


1500 
450 


600 


3950 


3250 


34,175 


3250 


20 


200 


O. 


SET  III.— DOUBLE  ENTEY  BOOK-KEEPING. 


Profit  and  Loss,  Dr. 
To  Cash,    -     -     -     - 


Answer  37. 


Profit  and  Loss,  Dr. 
ToMdse.   -    -    -    . 


Answer  38. 


Profit  and  Loss,  Dr. 
To  Bills  Receivable, 


Profit  and  Loss,  Dr. 
To  Wm.  Simpson,  - 


Answer  39. 


Answer  40. 


Answer  41. 

Sundries  Dr.  To  Bills  Receivable,  - 

Cash,     -     -     - 

Profit  and  Loss, 


Answer  42. 


Cash,  Dr.  -     -     - 
To  Profit  and  Loss, 


Profit  and  Loss,  Dr. 
To  Cash,    -    -    -    - 


Answer  4^. 


n 


Dr 

Cr. 

90 

90 

1000 

1000 

210 

210 

140 

140 

879 
20 

75 
25 

900 

250 

250 

430 

430 

SET  III.-DOUBLE  ENTRY  BOOK-KEEPINa. 

CLASSIFICATION   OF  ACCOUNTS. 

1.  Accounts  in  Double  Entry  books  are  divided  into  tliree  classes. 

1st.  Personal  Accounts.  See  Rules  2,  3,  4,  9,  10,  and  12. 

M.   Property  Accounts.  "       "      5,  6,  7,  11,  and  13. 

3d.   Profit  and  Loss  Accounts.    "       "      8. 

2.  Generally  the  title  or  heading  of  an  account  in  the  Ledger  will  in- 
dicate the  class  to  which  it  belongs ;  if  it  does  not,  the  nature  of  it  can 
be  determined  by  an  examination  of  its  debits  and  credits  on  the  book 
of  original  entry. 

3.  We  class  as  Personal  Accounts  all  accounts  that  show  debts 
due  to  or  from  individuals,  firms,  or  corporations.  These  accounts  are 
debited  and  credited  according  to  Rules  3  and  4,  and  must,  therefore, 
show  on  the  Dr.  side,  "  My  account  against  him  or  them,"  and  on  the  Cr. 
side,  "  His  or  their  account  against  me." 

4.  As  an  account  must  be  kept  of  each  kind  of  property  we  own  and 
deal  in,  we  follow  Rules  5,  6,  and  7,  and  keep  them  under  different 
heads,  and  class  them  as  Property  Accounts.  This  class  of  accounts 
will  show  on  the  Dr.  side  the  cost  or  value  of  the  property  bought  or 
received,  and  on  the  Cr.  side  what  it  sells  for  or  brings  us  in.  A  mer- 
chant keeps  an  account  of  all  the  articles  he  deals  in  under  the  head  of 
"  Mdse.  Acc't,"  and  if  he  purchases  any  property — bank  stock,  railroad 
stock,  house  and  lot,  farm,  or  warehouse — for  investment  or  speculation, 
he  opens  an  account  with  it  as  directed  by  Rules  6  and  7.  When  he 
deems  it  prudent  or  necessary  to  send  a  portion  of  his  goods  to  another 
market  for  sale,  he  keeps  a  separate  account  of  this  venture,  as  directed 
by  Rule  11. 

5.  Numerous  gains  and  losses  incidental  to  business  are  to  be  recorded 
and  kept  account  of.     For  these  the  third  class — Profit  and  Loss  Ac- 

72 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

COUNTS — are  kept.  This  may  be  done  in  one  account,  and  under  one 
head — Profit  and  Loss — carrying,  as  directed  by  Rule  8,  all  expenses  and 
losses  to  the  Dr.  side,  and  all  gains  from  any  source  to  the  Cr.  side. 
When  all  the  gains  and  losses  are  carried  into  one  account,  we  cannot 
determine  their  particular  sources  without  the  labor  of  going  over  the 
account  and  assorting  the  items  of  debits  and  credits.  Business  men, 
generally,  deem  it  important  to  keep  such  accounts  as  will  show  the 
source  of  all  gains  or  losses,  and  direct  their  book-keepers  to  open  and 
keep  branches  of  this  account,  such  as  Expense,  Interest,  Commission, 
&c.,  which  must  be  debited  and  credited  with  the  expenses,  losses,  and 
gains  arising  from  each. 

The  teacher  should  have  the  pupil  carefully  peruse  the  matter  on 
this  and  the  preceding  page,  then  make  use  of  the  foregoing  Day 
Book  and  Journal  entries,  and  show  him  how  a  Day  Book  entry  should 
be  analyzed  to  obtain  the  proper  debits  and  credits  for  the  Journal.  Ex- 
plain that  the  pupil  must  examine  the  Day  Book  entry  to  ascertain — 

Ist.  If  he  has  received  any  Cash,  Mdse.,  Notes,  or  Property  that  Rules  5 
and  6  require  him  to  debit. 

2d.  If  any  one  gets  into  his  debt,  or  if  he  pays  or  ceases  to  owe  any  one 
that  Rule  3  requires  him  to  debit. 

3d.  If  he  has  met  with  a  loss  or  paid  any  expenses  that  Rule  8  requires 
him  to  debit  Profit  and  Loss  for. 

To  determine  what  credits  to  make,  he  must  examine  his  Day  Book 
entry  again  to  ascertain — 

Ist.  If  he  has  delivered  any  Cash,  Mdse. ,  Notes,  or  Property  that  Rules  5 
and  7  require  him  to  credit. 

Sd.  If  he  gets  into  debt  to  any  person,  or  if  any  person  pays  or  ceases  to 
owe  him,  for  which  Rule  4  requires  him  to  credit  them. 

3d.  If  he  has  gained  anything  that  Rule  8  requires  him  to  credit  Profit  and 
Loss  for. 

In  journalizing,  if  a  pupil  cannot  say  why  he  debits  or  credits  an 
account,  let  him  analyze  his  Day  Book  entries  as  directed  above,  and, 
with  practice,  he  will  be  able  to  give  a  Rule  for  every  debit  and  credit. 

73 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


DETECTION  AND  CORRECTION  OF  ERRORS. 

1.  If  the  debits  and  credits  of  your  proof  sheet  are  not  equal,  an  error 
exists  that  must  be  souo:ht  for  and  corrected.     In  seeking  the  error — 

1st.  See  that  the  amounts  from  the  Ledger  are  correctly  transferred  to  the 
proper  column  of  your  proof  sheet. 

Sd.    See  that  all  accounts  in  the  Ledger  are  footed  and  forwarded  correctly. 

3d.  See  that  the  debits  and  credits  of  all  Journal  entries  are  equal.  If  the 
error  is  not  found  by  these  means,  the  posting  from  the  date  of  your  last  bal- 
ance, or  closing,  must  be  re-examined  and  re-checked. 

2.  To  correct  errors  in  the  Ledger,  make  the  error  refer  to  the  place 
of  correction,  and  make  the  correction  refer  to  the  place  of  error. 

3.  When  a  Journal  entry  has  not  been  posted  at  the  proper  time,  do 
not  make  the  date  column  of  your  Ledger  show  dates  improperly,  as,  for 
example,  that  April  comes  after  May,  but  post  the  entry  under  the  date 
of  the  last  entry,  giving  the  proper  date  to  right  of  explanation  column 
in  parenthesis ;  thus,  (April  7). 

4.  If  by  mistake  two  accounts  arc  opened  with  the  same  person  or 

property,  close  one  into  the  other,  "  To  "  or  "  By fol.  — ,"  and 

draw  lines  to  close  it  the  same  as  if  it  were  a  settled  account. 

5.  When  an  entry  is  posted  or  transferred  to  the  wrong  side  of  an 
account,  erase  the  figures  only,  and  fill  the  blank  with  cyphers.  Then 
post  to  the  proper  side.  An  entry  posted  twice,  or  to  a  wrong  account, 
may  be  corrected  in  the  same  way.  Never  make  a  "counter  entry" 
to  correct  an  error,  unless  it  cannot  be  corrected  by  some  of  the  plans 
given  above.  The  unnecessary  and  unmeaning  use  of  cyphers  in  the  cent 
columns  causes  many  mistakes  in  addition.  An  error  in  addition  can 
generally  be  corrected  by  writing,  "  Short,  added  fol.  — ,"  or  "  Over  added, 
deducted  fol.  — ."     Then  make  the  correction  on  the  folio  referred  to. 

6.  Errors  in  the  Journal  can  be  in  many  cases  corrected  by  cancelling 
one  or  two  figures  and  inserting  correct  ones.  If  this  cannot  be  done, 
make  a  new  entry,  and  mark  the  old  one,  "  Void,  corrected  p.  — ." 

74 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINQ. 


AUXILIARY  BOOKS. 

1.  By  this  term  we  mean  all  books  from  which  transactions  are  taken 
to  the  Day  Book  or  Journal,  such  as  the  Invoice,  Sales,  Cash,  and  Bill 
Books.  The  margins  or  "stubs"  of  Check,  Note,  Draft,  and  Order 
Books  are  classed  as  auxiliary  books,  but  as  they  are  simple  and  easily 
understood,  we  give  no  illustration  of  them  here. 

2.  Auxiliary  books  are  often  kept  in  a  small  business  as  a  matter  of 
convenience,  when  there  is  no  necessity  for  them.  By  their  use,  in  the 
absence  of  the  book-keeper,  any  one  could  make  an  entry  in  the  Cash 
Book  or  Sales  Book.  If  these  auxiliaries  were  not  kept,  no  one  would 
be  trusted  to  make  an  entry  in  the  Day  Book  of  money  received  or  paid, 
of  goods  bought  or  sold,  during  the  absence  of  the  book-keeper,  and  all 
transactions  would  have  to  be  kept  on  loose  sheets  of  paper  until  his 
return.  Loose  memoranda  are  liable  to  be  lost  or  mislaid,  and  for  this 
reason,  as  well  as  for  the  purpose  of  having  them  always  handy  for  refer- 
ence, business  men  prefer  to  keep  such  memoranda  in  a  careful  and 
systematic  manner  in  books  made  for  the  purpose.  Thus  the  Invoice 
Book  contains  all  the  memoranda  or  bills  of  mdse.  purchased ;  the  Sales 
Book  contains  all  the  memoranda  of  goods  sold ;  the  Cash  Book  contains 
all  the  memoranda  of  cash  received  or  paid,  and  the  Bill  Books  contain 
memoranda  of  all  notes  that  you  have  received  and  of  your  own  notes 
that  are  given  out.  So  it  appears  that  auxiliary  books  are  really  memo- 
randa of  transactions  kept  in  a  systematic  manner  for  the  book-keeper  to 
make  up  his  Day  Book  from. 

3.  While  the  auxiliary  books  are  a  convenience  in  almost  any  busi- 
ness, the  keeping  of  them  with  some  is  a  necessity ;  they  could  not  be 
dispensed  with  without  confusion,  and  serious  delays  in  business  result- 
ing. To  illustrate,  let  us  suppose  that  the  proprietor  of  an  establishment 
doing  a  large  business  should  decide  to  dispense  with  all  the  auxiliary 
books  we  have  named,  and  to  use  the  Day  Book  in  place  of  them. 
Then  all  the  clerks  would  have  to  record  the  business  in  the  Day  Book. 

75 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 

One  clerk  would  take  it  to  enter  a  bill  of  goods  he  had  sold,  and  while 
he  is  using  it  another  would  want  it  to  enter  some  money  that  had  been 
collected ;  another  would  want  it  to  enter  some  notes  that  had  been  re- 
ceived from  customers.  In  this  way  half  the  employes  about  the  estab- 
lishment would  be  kept  waiting  to  have  some  transaction  recorded. 
Any  one  can  imagine  the  inconvenience  of  doing  business  in  the  manner 
we  have  described  ;  and  besides  this,  the  clerks  are  tempted  to  make  and 
conceal  memoranda  of  goods  sold  or  of  money  received  that  may  never 
be  handed  to  the  book-keeper.  By  keeping  such  auxiliary  books  as  are 
required,  there  is  no  delay  in  recording  transactions,  and  no  temptation 
to  make  memoranda  on  loose  slips  of  paper.  The  clerk  who  makes  a 
sale  enters  it,  or  has  it  entered,  immediately  in  the  Sales  Book,  and  the 
goods  can  be  packed  and  shipped  without  delay.  Money  received  or 
paid  out  can  be  entered  in  the  Cash  Book,  notes  received  or  given  can 
be  entered  in  the  Bill  Book,  and  any  transactions  not  proper  to  be  entered 
in  any  of  the  auxiliary  books  can  be  reported  to  the  book-keeper,  who 
will  enter  them  upon  his  Day  Book. 

4.  In  a  business  of  any  magnitude,  the  work  of  the  book-keeper,  it 
may  be  said,  begins  with  the  transfer  of  the  contents  of  the  auxiliary 
books  to  his  Day  Book,  for  nearly  all  the  work  of  entering  business 
transactions  on  the  Invoice,  Sales,  Cash,  and  Bill  Books  is  performed  by 
others.  'The  "buyer"  generally  attends  to  the  Invoice  Book;  the  sales- 
man or  bill  clerk  enters,  calculates,  and  extends  all  sales  on  the  Sales  Book, 
and  the  financial  manager  makes  many,  if  not  all,  the  entries  on  the  Cash 
and  BiH  Books.  Tliere  are,  however,  houses  doing  a  heavy  business  in 
which  all  this  work  is  attended  to  by  the  book-keeper. 

5.  The  book-keeper,  whether  keeping  all  the  auxiliary  books  or  not, 
must  exercise. a  supervision  over  them,  and  feel  that  he  is  responsible  for 
the  errors  of  others  that  he  fails  to  find  and  correct.  He  or  some  trust- 
worthy assistant  must  examine  all  calculations  in  the  Invoice  Book  and 
Sales  Book  before  the  contents  of  these  books  are  transferred  to  the  Day 
Book. 

76 


SET  III.— DOUBLE  ENTKY  BOOK-KEEPING. 

6.  Having  explained  the  nature  and  use  of  the  auxiliary  books,  we 
next  direct  the  learner's  attention  to  the  important  work  of  the  book- 
keeper,  viz.,  transferring  the  contents  of  the  auxiliaries  to  the  Day  Book. 
The  learner  should  examine  the  entries  for  April  5  in  each  auxiliary  book 
that  they  are  found  in  and  compare  them  with  the  entries  on  the  same 
date  in  his  printed  Day  Book  to  satisfy  himself  that  no  items  or  details 
are  required — only  such  particulars  as  will  enable  him  to  make  a  Journal 
entry.  No  book-keeper  can  tell  from  memory  what  entries  he  has  trans- 
ferred from  one  book  to  another ;  therefore,  he  must  use  some  kind  of  a 
transfer  mark  that  will  indicate  how  far  he  has  progressed  with  his  work. 
Thus,  when  an  entry  is  taken  from  an  auxiliary  book  to  the  Day  Book,  a 
transfer  mark  in  ink  is  made  in  the  book  the  entry  is  taken  from ;  when 
an  entry  in  the  Day  Book  is  journalized,  a  transfer  mark  is  made  in  the 
Day  Book ;  when  a  debit  or  credit  in  the  Journal  is  posted,  a  transfer 
mark  is  made  to  show  it.  When  the  book-keeper  is  making  up  his  Day 
Book  for  a  day's  business,  he  may  begin  with  any  of  the  auxiliary  books, 
and  look  into  them  all,  one  after  another,  and  any  transactions  he  finds 
recorded  in  them,  on  the  date  for  which  he  is  making  up  his  Day  Book, 
must  be  transferred  to  it,  and  then  marked  off,  as  we  have  directed. 
The  transfer  mark  not  only  shows  that  the  entry  marked  has  been  trans- 
ferred, but  is  also  notice  to  all  who  have  access  to  the  book  not  to  alter 
or  change  the  entry  in  any  way.  Therefore,  if  the  book-keeper  neglects 
to  affix  a  transfer  mark  to  each  entry  as  soon  as  transferred,  he  has 
nothing  to  show  that  it  has  been  disposed  of,  and  it  may  be  altered  and 
added  to  by  any  one. 

7.  A  Day  Book  entry  often  covers  a  transaction  that  is  recorded  in 
two  or  more  of  the  auxiliary  books.  Thus,  cash  paid  for  freight  is  en- 
tered in  the  Cash  Book,  and  being  a  part  of  the  cost  of  mdse.,  it  is  en- 
tered in  the  Invoice  Book  also ;  and  while  it  does  not  make  any  differ- 
ence whether  you  make  the  Day  Book  entry  from  the  Invoice  or  Cash 
Book,  you  must  be  particular  to  affix  a  transfer  mark  to  the  entry  in  both 
books.     See  payment  of  freight  on  April  1  in  the  Cash  Book  and  Invoice 

11 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

Book.  In  the  opening  entry  in  tlie  Day  Book,  April  1,  the  learner  will 
find  a  transfer  from  the  Cash  and  Bill  Books,  which  must  be  marked  off 
on  both  these  books.  The  cash  sale  of  Mdse.  on  April  5  is  entered  in 
the  Day  Book  with  other  transfers  from  the  Sales  Book,  and  is  marked 
off  the  Sales  Book  to  show  that  the  sale  was  entered,  and  also  in  the 
Cash  Book  to  show  that  the  money  received  was  transferred  to  the  Day 
Book. 

8.  When  a  page  of  any  auxiliary  book  in  manuscript  is  full,  it  must 
be  footed,  and  the  amount  forwarded,  as  shown  in  the  printed  book.  By 
this  the  Invoice  Book  is  made  to  show  the  cost  and  charges  of  all  pur- 
chases during  the  month,  or  the  period  for  which  the  total  is  obtained ; 
and  if  all  transfers  are  correct,  the  footing  of  the  Dr.  side  of  the  Mdse. 
account  in  the  Ledger  for  the  same  period  will  agree  with  the  footing  of 
this  book.  Compare  and  see.  The  footing  of  the  Sales  Book  will  agree 
with  the  Cr.  side  of  the  Mdse.  account,  and  the  footings  of  the  Dr.  and 
Cr.  sides  of  the  Cash  Book  will  agree  with  the  footings  of  the  Dr.  and 
Cr.  sides  of  the  Cash  account  in  the  Ledger.     Compare  and  see. 

Teachers  should  read  and  illustrate  the  foregoing  to  learners  in  a 
class. 


78 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 

THE   INVOICE  BOOK. 

1.  The  first  entry  of  an  invoice  is  generally  made  in  this  book  on  the 
day  when  the  goods  are  received.  On  April  1  we  have  entries  of  in- 
voices that  bear  date  March  29  and  31.  At  the  time  of  entering  the 
invoice,  enter  the  terms — that  is,  the  term  of  credit,  if  any — on  which  it 
was  purchased,  and  the  discount  to  be  allowed,  if  any,  for  cash.  To 
make  the  footing  of  this  book  agree  with  the  Dr.  side  of  the  Mdsc.  acc't 
in  the  Ledger,  which  shows  the  cost  and  charges  of  all  goods  bought, 
the  freight  and  other  charges  on  each  invoice  must  be  entered  thereon. 

2.  When  the  learner,  in  making  up  his  Day  Book,  transfers  any 
amount  from  this  book,  he  must  mark  the  entry  D.  B.,  giving  the  page. 

3.  As  each  business  has  its  peculiarities  which  can  be  learned  only  by 
experience,  it  is  proper  to  observe  that  while  in  the  following  pages  the 
different  goods  are  designated  by  name,  numbers,  letters,  and  descrip- 
tions applying  to  the  dry  goods  business,  in  another  business  the  manner 
of  designating  the  various  kinds  would  be  partially  or  entirely  different. 

4.  In  any  business  where  the  purchases  are  few  in  number,  this  book 
may  be  dispensed  with,  and  the  amount  of  each  purchase  credited  to  the 
proper  party  or  parties,  at  the  end  of  each  month,  on  the  Day  Book  or 
Journal.     The  invoices  can  then  be  folded,  indorsed,  and  filed. 

6.  On  May  5  an  entry  records  the  return  of  goods.  Some  houses 
keep  a  book  for  such  entries,  and  at  the  end  of  each  month  deduct  the 
footing  of  it  from  the  footing  of  the  Invoice  Book,  but  this  is  not  intro- 
djiced  here,  as  we  do  not  post  direct  to  the  Ledger  from  the  auxiliaries. 

6.  The  bills  entered  in  this  book  at  the  end  of  each  month  are  for 
small  purchases  made  to  fill  the  orders  of  customers.  As  the  customer 
is  immediately  charged  with  them,  it  is  not  necessary  to  give  the  items. 

Yo  In  transferring  the  contents  of  this  book  to  the  Day  Book,  simply 
state  the  transaction,  which  would  be  a  purchase,  thus : 

"Bo't  of  Hood,  Bonbright  &  Co.  Mdse.  pr.  L  B.  1." 
You  may  add  the  terms  to  the  entry,  as  we  have  illustrated  on  D.  B.,  p.  1. 

79 


NEW  YORK,  April  1,  1875. 


D.B. 

11 

1 
1 

1 

Philadelphia,  Mar.  29,  1875. 
G.  A.  Gaskell, 

Bo't  of  Hood,  Bonbright  &  Co. 

100  pes.  Cont'tal  "  C  "  Shirting,  36  in.,  4000  yds.  @  11^ 
50    "    Allendale  Sheeting,  12/4,         2300    "         40 
20    "    Stark  "A  A"  Brown  Crash,        400    "         15 
20    "      do.    Bleached            do.           390    "         16 

Terms— Less  Frt.  to  New  York  on  4  bxs,  24^0  S  @  12 
60  day  note  or  acceptance. 

440 

920 

60 

62 

1482 
2 

450 
132 

108 
54 
38 

171 

88 

6 

40 

40 

88 

88 

1479 
2 

582 

465 
2530 

52 

D.B. 

'^  Freight  paid  on  above,  pr.  C.  B.  1, 

89 

D.B. 

New  York,  Mar.  31, 1875. 
G.  A.  Gaskell, 

Bo't  of  David  N.  Lord  &  Co. 

100  pes.  Carleton  Ginghams,   -     -     -     3000  yds.  @  15/' 
50    "    Bates'  Mills  do.          -    -     -    1200    "         11 

90  day  note. 

D.B. 

Baltimore,  Mar.  29, 1875. 
G.  A.  Gaskell, 

Bo't  of  Wm.  Simpson,  Sons  &  Co. 

50  pes.  Simpson's  Sideband  Prints,         1200  yds.  @  9/ 
25    '*         do.        Silver  Grey  do.             600    "         9 
12    "          do.         Mourning     do.             432    **          9 
50    "    Eddystone  Fancy          do.           1800    "          9^ 
20    "    Augusta  Brown  Drilling,               800    "          11 

4  cases,     -    .    -    - 
60  days,  net,  or 
4  months,  with  1  %  added. 

2  Forward,     -    -     - 

88 

_ 
29 

1  The  transfer  marks  "  D.  B.  1 "  must  not  be  made  when  the 
learner  is  copying  this  book.     See  VI  «  and  7,  p.  77,  and  1  2, 

^■'SeelT,  p.  77,andtl,p.  79. 

»  Each  page  must  be  footed,  as  shown  above,  and  immediately 
forwarded.    See  next  page. 

80 


lApril  1,  1875. 


2 


Bro't  forward,    -     -    - 


G.  A.  Gaskell, 


Philadelphia,  Mar.  29, 1875. 
Bo't  of  Campbell,  Knowles  &  Co. 


10  pes.  Union  Mills  Checks,  S  700, 
10    " 


Jf70, 

tf900, 

flSO, 


do.  do. 

10  "  do.            do. 

10  "  do.            do. 

5  "  Tennessee  Plaids,    -    - 

5  "  Texas             do.        -    - 

5  "  Magnolia       do.        -    - 

10  *'  Manchester  do.         -    - 

10  ''  Thistle  MiUs  Wigans,  - 

10  "  Crescent              do. 


300 
240 
300 
300 
180 
150 
150 
360 
60 
80 


ydg 


14^ 

12 

16 

18 

13i 

20 

8| 

10 

lOi 

9 


2  cases. 


60  days,  or 
2%  off  for  cash. 


Freight  prepaid. 


G.  A.  Gaskell, 


Baltimore,  Mar.  30, 1875. 
Bo't  of  Coffin  &  Altemus. 


15  pes.  Union  Mourning  Prints,  -    - 

15  ■ 

10 

10 


-  360  yds 
do.  Sideband  do.  ...  540  " 
do.  Grec.  Grey  do.  -  -  -  360  " 
do.     Solid  Black  do.      -    -    -  240    " 

Wamsutta  Robes, 120    ** 

2  cases,     - 


Cash,  in  ten  days  from  date. 


Forward,  - 


*  We  give  the  place  of  business  on  p.  1  of  this  book, 
requiredon  every  page. 

81 


It  is  not 


2530  29 


80 


30 


2970 


April  1,  1875. 


Bro't  forward. 


a  A.  Gaskell, 


Boston,  Mar.  30, 1875. 
Bo't  of  Joy,  Langdon  &  Co. 


10  pes.  Hamilton  Prints, 

10  -       ~     ■ 

10 
10 
10 
10 
10 


360  yds. 


do.       Checks, 240 

do.       Purples, 800 

do.       Special  Styles,      -    -  360 

Gold  Medal  Denims,  -    -    -    -  240 

Pearl  River      do.        -    .    -    -  360 

Boston  do.        -    -    -    -  860 

2  cases, 
4  mos.  note  or  acceptance. 


^9j^ 

9 

9^ 
lOi 
14 
19 

9 


P'd  Frt.  on  Wm.  Simpson,  Sons  &  Co.'s  Inv.  per  C.  B.  1 
'      "     "  Coffin  &  Altemus'  "      "      "     1 

'      "     "  Joy,  Langdon  &  Co.'s  "      "      "     1 

*  Insurance  do.  **      "      "     1 

*  Jno.  R.  Scott  for  packing  cases,  -    -    -     "      "     1 


====   15     =====r==: 

Baltimore,  April  10, 1875. 
G.  A.  Gaskell, 

Bo't  of  Wm.  Simpson,  Sons  &  Co. 

20  pcs.'Pacific  Percales, 480  yds.  @  21^ 

20    "       do.     Organdies,-    -    -    -    -    720    "  18 

20    "       do.     Lawns, 500    "         16 

5    "    Lancaster  Cambric,   -    -    -    -     120    "  12| 

5    "    Merrimac       do.         -    -    -    -    120    "         14 

2  cases,      .    -    .    - 

60  days,  net,  or 
4  months,  with  1  %  interest  added. 

Forward,    .    -    -    - 


^  This  entry  must  be  marked  off  here,  and  also  in  the  Cash 
Book.    See  ^  7,  p.  77. 

82 


32  40 

2i;60 
28  50 
37  80 

33  60 
68;40 
32|40 

3 


2970  74 


4 
1|64 
2'40 
2  57 
20 


100  80 
129  60 

80j  I 

15!  i 

16:80 

3  I 


3604  93 


April  26,  1875. 


Bro't  forward, 


G.  A.  Gaskell, 


Boston,  April  24, 1 875. 
Bo't  of  Dexter,  Abbott  &  Co. 


5  pes.  Bunnell's  Light  Fancy  Prints,  -    120  yds.  @  9> 

5    "  do.       Robes, 120    "         93 

5    "  do.       Pinks, 120    "         9J 

Received  payment, 

Dextee,  Abbott  &  Co., 

Per  Nath.  Doty. 


30 


Bo't  of  David  N.  Lord  &  Co.     Mdse.  pr.  bill,  April  1 


do. 
do. 
do. 

Passavant  &  Co. 
do. 


do. 
do. 
do. 

do. 
do. 


T.  P.  Remington,  Jr.       do. 


do. 
do. 
do. 

do. 
do. 

do. 


30 


'  Cost  of  purcliases  for  April, 


'  See  1  7,  p.  77, 
^  See  t  C,  p.  79. 

^  Compare  this  footing  with  footing  of  Dr.  side  cf  Mdse.  acc't 
in  the  Ledger.    See  *f  1,  p.  79. 


83 


3604 


93 


10  80 
1140 


11 


40 


33 


60 


46  05 

78  50 


10. 
37'73  38 


r> 

May  5,  1875. 

Mat^CUKSTER,  May  1 

1875. 

G.  A.  Gaskfjj., 

Bo't  of  Amoskeag  Manf 

'gCo. 

D.B. 

4 

50  pes.  Amoskeag  Bl.  Sheeting,  10/4,  2000  yds. 
25    "          do.                   do.         6/4,1000    " 

@  331^ 
18 

650 
180 

50    "          do.        A  Brown  Drilling,  1900    " 

Hi 

218 

50 

20    "          do.      ACA  Ticking,  36  in.  800    ** 

30 

240 

20    "           do.        Denims,                    480    " 

20 

96 

20    "          do.           do.        B,              480    " 

15 

72 

6  cases,     - 

.    -    - 

00 

1456 

50 

Cash. 

n 

1  Returned  by  Felton  &  Bigelow,  Cleveland,  0. 

D.B. 

4 

1   Ark'T    '*  T  .o-iTol  "  T^oT-ia  T^i/1  riUnvpc!        _      .      _ 

2.^ 

X  ufjii,     xjcvei     IT  HI  Its  xvivi  vjiuvco,     ------ 

5?1    

*o 

! %Ji.          ■ 

Providence,  R.I.,  May  25 

1875. 

G.  A.  Gaskell, 

Bo't  of  A.  &  W.  Sprague  Manf 

'Q  Co. 

D.B. 

5 

20  pes.  Sprague  Frock  Prints,  -    ••    -    4S0  yds.  @  ^^' 

45 

60 

20    '*        do.       Red        do.     -    -    -    480    " 

Oi 

45 

60 

20    "        do.       Pink      do.      -    -    -    480    " 

10 

48 

10    "        do.       Blue  and  White  Prints,  360    " 

m 

37 

80 

3  cases. 

-  -  . 

00 

177 

5 

GO  days. 

46 

D.B. 

^  Bo't  of  D.  N.  Lord  &  Co.     -    -  Mdse.  pr.  bill, 

Mayl 

18 

D.B. 

5 

"         T.  P.  Remington,  Jr.         do.        do. 

"     1 

12 

84 

**                        do.                        do.        do. 

"    5 

6 

95 

"                        do.                        do.        do. 

"     10 

41 

84 

do.                        do.        do. 

"     20 

4 

60 

**                        do.                        do.        do. 

"    25 

21 

"                        do.                        do.        do. 

"    31 

4 

91 

23 

DB. 

5 

"         Passavant  &  Co.      -    -     do.        do. 

"    1 

16 

40 

"                        do.                        do.        do. 

"    20 

12 

20 

"                         do.                         do.        do. 

"    31 

19 

40 

48 

Forward,    - 

-    -    - 

1841 

91 

»  See  ir  5,  p.  79.                               '^  See  1  C,  p.  79. 

84 


May  31,  1875. 


D.B, 
D.B. 


Bro't  forward. 


D.B. 


D.B. 


D.B. 


^P'd  casli  for  Frt.  on  Amoskeag  Manfg  Co.  Inv.,  May  5 
Sprague  "        "      "       "  31 


CC  <( 


Cost  of  purchases  for  May, 
**  "         previous. 


to  date. 


June  30 


G.  A.  Gaskell, 


Baltimore,  June  25, 1875. 


Bo't  of  Wm.  Simpson,  Sons  &  Co. 


20  pes.  Pacific  Percales,  - 
20    "       do.     Organdies, 
20    "       do.     Lawns, 
5    "    Lancaster  Cambric, 


Merrimac        do. 


-  -    480  yds.  @  20,«^ 
■    -    720    "         17 

-  -  500  "  15 
.  -  120  "  12 
.  -  120  "  14 
2  cases,     -    -    -    - 


60  days. 


Bo't  of  T.  P.  Remington,  Jr. June  25 


SMdse.  Dr.  To  P.  McGee— 

For  Cartage  in  April,  per  tickets. 
May, 
June. 


Cost  of  purchases  for  June, 
"  "         previous, 


to  date. 


^  This  shows  how  an  entry  omitted  on  its  proper  date  may  be 
entered  afterwards. 

^  We  debit  Mdse.  with  all  we  pay  for  cases  and  cartas,  be- 
cause it  is  afterwards  credited  with  all  the  charges  we  make  for 
either.    Some  keep  a  "Drayage  acc't,"  but  it  would  give  the 
learner  too  much  trouble  to  illustrate  it  here. 
I     '  Compare  with  Dr.  side  of  Mdse.  acc't. 

85 


40 


1841 


12 


91 


1853191 

3773|38 

5627  29 


122 

75 

14 

16 

3 


32^ 


80 


21 

429 
5627 

6050 


60 


60 


June  30,  1875. 


^nmifroRY  of  mise.  m  hap  this  day. 

50  pes.  Contin'tal  "C "  Sliirting,  06  in.,  2000  yds.  @  llf 


10  "  Stark  A  A  Brown  Crash,  -  -  200 
10  "  do.  Bleached  do.  -  -  195 
10  "  Carleton  Ginghams,  .  -  -  -  300 
10    "     Bates'  Mills  do.  -     .     .    -    240 

10  "  Simpson's  Sideband  Prints,  -  240 
10    "     Eddystono  Fancy  do.        -    3G0 

25    "    Amoskeag  Bleached  Sheeting,  1000    "      32yV 
25    "  do.        A  Brown  Drilling,       950    "        llf 

Add  amount  of  Wm.  Simpson,  Sons  &  Co.'s  Invoice, 
June  25,  not  opened  at  time  of  taking  Stock,  -    -    - 


15 
16 
15 
11 


^  The  foregoing  i?  a  complete  inventory  of  all  the  goods  on 
hand  at  this  date.  The  amount  of  Simpson's  last  invoice  is  all 
that  is  required,  as  the  c:oods  arrived  on  the  day  Stock  was 
taken,  and  were  not  unpacked.  If  freight  had  been  paid,  it 
would  be  added  to  the  inventory.  An  inventory  should  be  taken 
so  as  to  show  the  exact  cost  (charges  included)  of  the  goods  on 
hand.  If  not,  the  real  gain  per  cent,  on  Mdse.  cannot  be  ascer- 
tained. The  gain  or  loss  on  Mdse.  cannot  be  learned  without 
this  inventory.  See  Rule  2,  p.  41,  and  ^  15,  p.  42,  and  Mdse. 
acc't,  p.  124. 


220 
30 
31 

45 
26 
21 


34;5G 

327| 
110,20 

327  60 


1173 


80 


86 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 


SALES  BOOK. 

1.  In  this  book  we  enter  particulars  of  all  sales,  whether  on  credit  or 
for  cash,  and  thus  avoid  entering  particulars  of  long  bills  on  the  Day 
Book.  To  illustrate,  compare  the  entry  of  sale  to  Thos.  May  Peirce  on 
S.  B.,  p.  1,  with  J).  B.  entry  of  the  same.  What  occupies  ten  lines  on  the 
S.  B.  is  entered  on  one  line  in  the  D.  B.     Read  ^^  2  and  3,  p.  75. 

2.  If  the  business  is  small,  this  book  may  be  dispensed  with,  and  the 
items  and  terms  of  each  sale  entered  on  the  D.  B. 

3.  Each  page  of  this  book  is  footed  and  forwarded  to  the  end  of  the 
month  to  show  the  month's  sales.  The  sales  for  previous  months  are 
added  to  show  the  total  sales,  and  to  give  the  book-keeper  timely  notice 
of  any  disagreement  between  the  footings  of  his  Sales  Book  and  the  foot- 
ing of  the  Cr.  side  of  the  Mdse.  acc't. 

4.  In  business,  the  word  "  sold  "  is  rarely  used  in  this  book. 

5.  When  a  bill  is  made  out  and  forwarded  to  the  purchaser,  the  entry 
in  this  book  should  be  marked  "  B,"  to  show  that  the  bill  was  made  out 
and  sent.     See  first  entry  on  next  page. 

6.  As  each  entry  is  passed  into  the  Day  Book,  it  should  be  marked 
off  thus,  "  D.  B.  — ,"  and  the  page  given. 

7.  In  making  out  bills  from  this  book,  on  bill  paper  with  double 
columns,  extend  amounts  into  outer  column,  as  shown  in  Form  8,  p.  136. 

8.  All  payments  for  cases  and  cartage  have  been  charged  to  Mdse. 
in  the  Invoice  Book.  Therefore,  where  a  charge  has  been  made  for 
either,  it  is  a  credit  to  Mdse.     See  Note  2,  p.  85. 

9.  Customers  frequently  order  articles  that  we  do  not  keep  or  deal  in. 
To  fill  such  orders  we  go  out  and  purchase  the  articles,  and  charge  them 
at  a  small  advance  on  the  cost  price.     See  T  6,  p.  Y9. 

10.  Names  of  firms  and  individuals  should  be  correctly  spelled.  The 
terms  of  a  sale  should  be  specified,  that  the  book-keeper  may  attend  to  the 
collection  at  maturity.  It  is  customary  in  business  to  add  one  cent  for  a 
half  or  anything  over  a  half  cent.    Anything  under  a  half  is  not  counted. 

87 


NEW  YORK,  April  5,  1875. 


Sold  Tlios.  May  Peirce,  Philadelphia,  Pa. 

2  pes.  Bates'  Mills  Ginghams,     -    -      48  yds.  @  12^/' 
20    "     Carleton  do.  -     -    600    "        16^ 

40    "     Contin'tal"C"  Shirting, 36  in.,  IGOO    "         12| 
40    "    Allendale  Sheeting,  12/4,  -     -  1680    "        45 
40    "    Eddy  stone  Fancy  Prints,  -    -  1440    "        lOi 

5    "    Augusta  Brown  Drilling,  -    -    200    **        124 

ISi  «  Capitola  Twine, 24 

Cases  and  cartage, 

Terms — 60  days. 


Sold  Charles  C.  Cochran,  Pittsburgh,  Pa. 

10  pes.  Stark  A  A  Brown  Crash,     -    -    200  yds.  @  17^ 

1    "    Bates' Mills  Gingham,    -     -    -      24    "  13 

5    "    Union  Mills  Checks, « 70,   -     -    120    "  14 

13|  #  Hope  Mill  4-ply  Twine, 35 

Case  and  cartage,    -    -  - 

60  days. 


Sold  E.  N.  Hartshorn,  Mt.  Union,  O. 

10  pes.  Contin'tal  " C"  Shirting,  36  in., 400  yds.  @  13i^ 
10    "     Stark  AA  Bleached  Crash,    -     195    "         19| 
10    "     Simpson's  Sideband  Prints,  -     240    "        10^ 
10    "    Bates'  Mills  Ginghams,     -     -    240    "        13 
3  doz.  Kid  Gloves,  "Paris,"  3-button,   -    -  @  $22.00 
Case  and  cartage,     -    -    -    - 

60  days. 


^  Forward, 


'  This  mark  Indicates  that  the  bill  is  made  out  and  sent. 
'  Refer  to  Note  1,  p.  80. 

*  This  is  an  article  we  do  not  keep.    See  f  9,  p.  87. 

*  See  Note  3,  p.  80. 

88 


200 
756 
151 

25 
4 

12 


1253 


60 


60 


20 


215 


1529 


83 


63 


1  April  5,  1875. 


D.B. 


D.B. 


D.B. 


Bro't  forward. 


Sold  Felton  &  Bigelow,  Cleveland,  O. 

20  pes.  Carleton  Ginghams, 

12  ~"  ■    "         - 

10 

10 

10 


Simpson's  Mourning  Prints, 
Union  do.  do. 

do.     Solid  Black         do. 
Thistle  MUls  Wigans,   - 


600  yds.  @  17^ 
432    "        104 


240 

240 

60 


30  days. 


Cases  and  cartage,    - 


10| 

lOi 

12| 


■^  Sold  for  cash, 
2  pes.  Bates'  Mills  Ginghams, 


48  yds.  @  12i^ 


lO 


D.B. 


Sold  I.  N.  Forner,  Pittsburgh,  Pa. 

10  pes.  Simpson's  Sideband  Prints, 
10    "  do.         Silver  Grey  do.       -  240 

5    "     Augusta  Brown  Drilling,     -     -  200    " 
5    "    Union  Mills  Checks,  -    -    -    -  150    " 
Case  and  drayage, 
30  days. 


240  yds.  @  lOi;^ 

loi 

21i 


'  German  Insurance  Co.  Dr. 

For  40  %  damages  awarded  by  appraisers  for  damage 
by  water  on  goods  from  Joy,  Langdon  &  Co.  -    -    - 
60  days. 

Forward,    -    -    - 


»  See  Note  1,  p.  81. 

"  An  entry  of  the  receipt  of  this  money  will  be  found  on  the 
Dr.  eide  of  the  Cash  Book.  Mark  it  off  when  this  is  transferred 
to  the  Day  Book.    See  %  7,  p.  7J. 

^  Our  purchase  from  Joy,  Langdon  &  Co,  was  damaged  by 
water  while  in  transit,  and  the  appraisers  report,  as  above,  that 
the  damages  amount  to  40;?  on  the  invoice.  This  report  makes 
the  company  in  which  the  goods  were  insured  responsible  to  me 
for  $10308. 

89 


102 
45  36 
25  20 


1529  63 


April  15,  1875. 


Bro't  forward,     -    .    .    - 

1957 

77 

Sold  Ricliard  Nelson,  Cincinnati,  0. 

D.B.  2 

15  pes.  Simpson's  Silver  Grey  Prints,    3G0  yds.  @  lOlf 
/    10    "    Bates'  Mills  Ginghams,  -     -     -  240    ''         13' 
10    "     Carleton               do.        .     .     .  aOO    "        17 
5    "    Augusta  Brown  Drilling,    -    -  200    "        13  J 
Case  and  drayage,    -    -    - 

37  80 
3120 
51 
27 
150    148 

50 

GO  days. 

Sold  W.  H.  Sadler,  Baltimore,  Md. 

D.B.  i 

5  pes.  Augusta  Brown  Drilling,      -     -  200  yds.  @  13?,/ 

I   5    "     Tennessee  Plaids, 180    "        ICj 

5    "    Texas            do. 150    "        25 

5    "    Crescent  Wigan, 40    "        10| 

Case  and  drayage,    -    -    - 

30  days. 

27 
29  2 
37  5 

43 

1 

5 

0 
5 

99 

10 

Sold  Thos.  May  Peirce,  Pliiladelpliia,  Pa. 

D.B. 

10  pes.  Bates'  Mills  Ginghams,     -    -    240  yds.  @  12}/ 
2   40    "    Carleton              do.           -    -  1200    "        10, V 
2    "    Hampden  Cottonades,  30  +  25,     55    "        3li- 
2  cases  and  drayage,  -    -    - 

30  days. 

30 
198 
17  3 
2  5 

3 

0    247 

83 

Sold  E.  N.  Hartshorn,  Mt.  Union,  0. 

D.B. 

10  pes.  Allendale  Sheeting,  12/4,     -    -  420  yds7@  50/- 
2     5    "     Union  Mills  Checks,*  70,     -    -120    "        14 
5    "             do.            do.      fi50,     -    -  150    "        21| 
Case  and  drayage,  -    -    -    - 

60  days. 

Forward,    -    -    - 

-210 
16  8 
32(3 

2 

0 
3 

261 

2714 

43 

1 
,63 

90 


April  26,  1875. 


D.B. 


D.B. 


D.B. 


D.B. 


D.B. 


D.B. 


Bro't  forward. 


Sold  Felton  &  Bigelow,  Cleveland,  O. 
10  pes.  Manchester  Plaids,      .    -     .     .  360  yds.  @  12/- 
10    "     Union  Grecian  Grey  Prints,      -  360    "         10  Jr 
5    "        do.    Sideband  do.  -  180    "        10| 

1  doz.  "Level"  Paris  Kid  Gloves, 

Case  and  cartage,     -    -     - 

60  days. 


30 


Sold  David  N.  Lord  &  Co. 

20  pes.  Simpson's  Sideband  Prints,       480  yds.  @  9i%!^ 


2714 


63 


Sold  T.  P.  Remington,  Jr. 

5  pes.  Union  Mourning  Prints,  -     -     -  120  yds.  @  lOf 

5    "    Crescent  Wigan, 40    "  10 


20 

80 
90 

50 


Sold  Passavant  &  Co, 
5  pes.  Magnolia  Plaids, 


150  yds.  @  9if 


Sold  for  cash, 

10  pes.  Union  Sideband  Prints,  -     -     -  360  yds.  @  lOf 

31  doz.  Clark's  O.N.T.  Spool  Cotton, 71 


1  Sold  for  cash,  at  auction,                 (A2)r.  15) 
Invoice  of  damaged  goods  received  from  Joy,  Lang- 
don  &  Co.  of  Boston.     Net  proceeds, 

2  Sales  for  April,     -    -     -     - 


^  When  an  entry  has  been  omitted  on  its  proper  date,  enter  it 
under  the  next  convenient  date,  f^iving  its  correct  date  m  paren- 
theses, as  in  the  ilhistration  above. 

"  Compare  with  the  footings  of  Mdse.  acc't.    See  1 3,  p.  87. 

91 


124 


47 


40 


52 


12 
4 


01 


10 


14 


58 


175 


3150 


May  1,  1875. 

Sold  Felton  &  Bigelow,  Cleveland,  O. 

5  pes.  Pacific  Percales, 120  yds.  (? 

5    "       do.     Organdies, 180    " 

5  "       do.     Lawns, 125    " 

3    "    "  AU  Right "  Ky.  Jeans,  -    -    -      90    " 

6  "    I  Corded  Alpacas, 216    " 

Case  and  drayage,      -    - 

60  days. 

====   5    ===== 

1  Returned  to  David  N.  Lord  &  Co. 

1  doz.  "  Level "  Paris  Kid  Gloves,  bo't  April  26, 


D.B. 


D.B. 


D.B. 


D.B. 


25^ 

22 

20 

12i 

22 


D.B. 


Sold  Thos.  May  Peirce,  Philadelphia,  Pa. 

10  pes.  Union  Mills  Checks,  t  700,     -    300  yds 

10    "      do.       do.       do.       #900,     -    300    " 

1    "    South wark  Doeskin,      -    -    -      30    " 

Case  and  drayage,     - 

60  days. 


W 

18 

44 


Sold  E.  N.  Hartshorn,  Mt.  Union,  O. 
5  pes.  Bates'  Mills  Ginfrhams, 


120  yds.  @  W 


5    "    Wamsutta  Robes,      -    ...  120  "  10 

15    "    Pacific  Lawns, 375  "  20 

5    "    Merrimac  Cambric,    -    -    -    -  120  "  17 

4    "    Printed  Delaines,  3/4,    -    -    -  96  "  18  ^ 

1    "    Laborer's  Doeskin,    -    -    .    -  30  "  26 

Case  and  drayage,  .    -    -    - 

60  days. 


10 


Sold  David  N.  Lord  &  Co. 

5  pes.  Dunnell's  Robes, 120  yds.  @  10|^ 

Forward,   -    -    .    - 


^  A  cnstomer  returns  an  article  we  purchased  for  him,  and  it 
is  charged  and  returned  to  the  party  from  whom  we  purchased 
it    Refer  to  I.  B.,  p.  84,  and  see  who  returned  the  gloves. 

92 


30 
39 
25 
11 
47 
2 


20 
150 


15  60 

12 
75 


17|76i 
liSO 


May  lO,  1875. 


D.B. 


D.B. 


D.B. 


D.B. 


Bro't  forward. 


Sold  I.  N.  Forner,  Pittsburgh,  Pa. 

5  pes.  Dunnell's  Pink  Prints,    -     -    -  120  yds.  @  111^^ 

3    "    National  Doeskin, 72    "         61" 

(j^glj  Case  and  drayage,    -    - 

z::z:z:=:===    20   ===== 


Sold  Passavant  &  Co. 

25  pes.  Amoskeag  Blea.  Sheeting,  G/4,  1000  yds  @  20$ 


D.B. 


D.B. 


Sold  T.  P.  Remington,  Jr. 

25  pes.  Amoskeag  "  A  "  Br.  Drilling,    950  yds.  @  12|'f 

======  31  ^ 


Sold  Thos.  May  Peirce,  Philadelphia,  Pa. 
15  pes.  Pacific  Percales,       ...    -    360yds.@23i^ 
15    "       do.      Organdies,    ....    540    "        20.V 
1    "    Serge  Skirtmg,  5/8,      -    -    -      24    "        55^ 
Case  and  drayage,    .    .    - 
60  days. 


Sold  Passavant  &  Co. 

25  pes.  Amoskeag  Blea.  Sheeting,  1 0/4, 1000  yds.  @  SG-f 


Sold  Felton  &  Bigelow,  Cleveland,  O. 
5  pes.  Lancaster  Cambric,    -     -     -     -     120  yds.  @  15^ 
5    "     Dunnell's  Light  Fancy  Prints,     120    "         lO^ 

23»  Samson  Twine, 22 

7  pes.  Albany,  Ky.,  Jeans,  -    -     -     -    210  yds.  @  10^ 

60  days.  Case  and  cartage,     .    .    - 

By  reduction  on  bill  May  1, 

'  Sales  for  May,      .     .     .    . 


previous, 
to  date,  ■ 


Refer  to  Note  2,  p.  91. 
93 


456  43 


58 


72 


200 


121 


13 


84 

110 

13 

2 


210  50 


360 


1455 
3150 

4606 


7 

June  1,  1875. 

D.B.  5 

Sold  David  N.  Lord  &  Co. 

20  pes.  Sprague  Frock  Prints,     -    -    480  yds.  @  10 1^ 

55  2( 
45 

21 
15 

288 
1152 

884 

45:9 

27 

43  2 

18  4 

3 

50 
13 

) 
} 

3      82 

13 
13 
13 

0 

0 
0 

0 
0 
027 

812 
460C 

5416 

40 

D.B.  5 

Sold  T.  P.  Ptemington,  Jr. 

5  pes.  Sprague  Piuk  Prints,     -    -     -    120  yds.  @  11;^  | 

r;                                           

20 

D.B.  6 

Sold  C.  C.  Coeliran,  Pittsburgh,  Pa. 
20  pes.  Sprague  Red  Prints,     -     -     -    480  yds.  @  114/' 
10  doz.  Globe  Mills  Spool  Cotton,     -----    45 
1      "     "  Rpal  Kid  "  Pari q  Glnvp<5      -     - 

Case  and  cartage,    -    -    -    - 
60  days,  or  2%  off  for  casli. 

tfi  -.-      ..  - ..  „  , 

20 

D.B.  6 

Sold  Passavant  &  Co. 

5  pes.  Sprague  Pink  Prints,  -    -     -    -  120  yds.  @  11$ 
.  *>-|    

20 

D.B.  e 

Sold  D.  N.  Lord  &  Co. 

5  pes.  Sprague  Pink  Prints,       -    -    -    120  yds.  @  11^ 

20 

D.B.  C 

Sold  Passavant  &  Co. 

5  pes.  Sprague  Pink  Prints,       -    -     -    120  yds.  @  llf 

20 

D.B.  ( 

Sold  T.  &  G.  Gallagher,  Johnstown,  Pa. 
20  pes.  Amoskeag  ACA  Ticking,  36  in.,  800  yd 
J   20    "          do.         Denims,    -     -     -     -    480    ' 
20    "          do.             do.      B     -     -    -    480    * 
10    "    Sprague  Blue  and  White  Prints,  360    ' 

2  "    "  Hoosier "  Doeskin,  -     -     -     -      72    ' 

3  "    Deer  Island    do.        72    * 

2    "    Conestoga  Ticking,     .     -     -     -      80    ' 

Cases  and  cartage, 
60  days. 

Rnlpa  "fnr  .Timp 

s.  @  36/ 
24 
18 

371 
60" 
23 

10 

^0 

"    previous, 

1       ft     fr>  dfltp 

20 
70 

1  Compare  with  the  Cr.  side  of  Mdse.  acc't. 
94 

SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

CASH   BOOK. 

1.  The  use  of  this  book  is  important,  for  by  it  wo  determine  cacli  day 
whether  all  money  received  or  paid  out  has  been  entered.  Thus,  the  Dr. 
side  shows  all  money  received ;  the  Cr.  side,  all  money  paid  out ;  and  the 
difference  between  these  sides  is  the  amount  on  hand.  When  the  money 
in  bank  and  on  hand  is  counted,  it  must  agree  with  this  difference,  or 
balance,  shown  to  be  on  hand  by  this  book.  If  it  does  not,  something 
has  been  omitted,  or  an  error  exists  somewliere  that  must  be  found  and 
corrected.     See  ^  2,  p.  75. 

2.  As  the  entries  on  this  book  are  taken  to  the  Day  Book,  each 
must  be  marked  off  on  the  left  side  of  the  money  column,  in  ink, 
thus,  V 

3.  In  entering  money  received,  write  the  date  in  the  date  column,  on 
the  Dr.  side ;  the  name  of  the  person  or  account  to  be  credited  with  it, 
to  the  right  of  the  •  date  column ;  and  next,  the  explanation  and  amount. 
Money  paid  out  is  entered  in  the  same  way  on  the  Cr.  side.  Separate 
the  Ledger  titles  from  the  explanations  by  drawing  a  light  red  ink  line 
down  the  page.     See  next  page. 

4.  The  footings  of  this  book  will  agree  with  those  of  its  representa- 
tive in  tlie  Ledger,  if  your  work  of  transferring  its  contents  is  correct. 

5.  In  ruling  this  book,  care  must  be  taken  to  draw  a  footing  line 
under  the  longest  column  of  figures  first,  then  draw  the  footing  line,  on 
the  other  side,  immediately  opposite.  It  spoils  the  appearance  of  your 
book  to  have  the  footing  and  closing  lines,  on  one  side,  four  or  five  lines 
above  those  on  the  opposite  side. 

6.  The  Balance  entries  must  be  written  in  red,  and,  after  footing  and 
closino;  lines  are  drawn,  should  be  brousjht  down  on  the  next  line  below 
the  closing  lines  on  the  Dr.  side. 


95 


1  Dr. 


CASH 


1875. 
Apr. 


G.  A.  Gaskell,  - 
Mdse.     -    -    - 
Bills  Receivable, 
German  Ins.  Co. 
Mdse.      -    -    - 
do.        -    -    - 


May 


Rec'd  on  account  of  capital,    -    -    -    - 

"      for  sale  per  S.  B.  2, 

"     am't  of  Jno.  Gundry's  note,  -    - 

"     in  fuU, 

"      from  eale  at  auction.  S.  B.  4,-     - 
"     for  sale,  S.  B.  4, 

2340.93  / 

6U8.33  ./ 


20 


Felton  &  Bigelow, 

do.  do. 

Bills  Receivable,  - 
I.  N.  Forner,  -  - 
W.H.Sadler,-    - 


Balance  bro't  down,  -   -     -   - 
Rec'd  per  W.  A.  Miller,  -    -    - 

on  account, 

for  No.  2,  discounted,  - 
for  sight  draft  on  him,  - 
on  account  bill  April  15, 


Forward, 


»  See  Note  2,  p.  89. 


900 

6 

1100 

101 

175 

58 


2340 


93 


2340 

1732 

207 

150 

2000 

58 

75 


4224 


18 


2340  93 


ACCOUNT. 


Cn    1 


1875. 
Apr. 


30 


May 


Expense, 

do. 

do. 
Mdse. 
Store  Fixtures, 
Expense, 

do. 

do. 
Mdse. 

do. 
A.  H.  Hinman, 
W.  A.  Drake,  - 

do.  -    - 

Expense,  -  - 
Mdse.  -  -  - 
Profit  and  Loss, 
A.  H.  Hinman, 
P.  McGee,  -  - 
Jerry  Murpliy, 
W.  A.  Drake.  - 


G.  A.  Gaskell,  -  - 

Mdse,      -     -     .  - 

Interest,       -     .  - 

A.  H.  Hinman,  - 

Amoskeag  Mfg.  Co. 

W.  A.  Drake,  -  - 

G.  A.  Gaskell,  -  - 

W.  A.  Drake,  -  - 

I.  N.  Forner,    -  - 


d  Freight,  I.  B.  1,    -    -    -    -    - 

for  Books,  &c., 

Jno.  Connor  for  Papering,  - 
for  Postage  Stamps,  -  -  - 
Jno.  R.  Scott  Bill  of  Boxes,  - 
for  Counters  and  Shelving,  - 
Jno.  F.  Cluley  for  Painting,  - 
Post-office  Box  Rent,    -   -    - 

for  sundry  Tools, 

sundry  Freight  Bills,  -  -  - 
Insurance  on  Boston  Invoice, 
on  account, 

do.        

do.  , 

Expenses  to  Boston,  -  -  - 
Dexter,  Abbott  &  Co.,  I.  B.  4, 
Donation  to  Tract  Society,  - 
on  account, 

do.        

Wages  to  date, 

on  account, 

Balance  to  new  account,  -   -  eos.ss 


P'd  Rent  to  date, 

Freight,  I.  B,  6, 

Discount  on  Conover's  Note, 

on  account, 

their  Draft, 

on  account, 

do.        

do.        

our  eight  Draft  returned,  -    - 

Forward,    - 


G 


^  Every  debit  to  Mdse.  here  will  be  found  also  on  the  Invoice 
Book,  and  when  transferred  to  the  Day  Book  must  be  marked  off 
both  books. 

97 


30 

18 
5 

20 
180 

65 
2 
4 


2 
20 
25 
35 
16 
33  60 


70 


50 
10 

1732 


2340 


50 

8 

30 

10 

1456 

45 

100 

30 

58 


1788 


2    Dr. 


CASH 


1875. 
May- 


Si 


I.  N.  Forner, 
W,  H.  Sadler, 


Jun. 


10 


July 


C.  C.  Cochran, 

do. 
Bills  Receivable, 

do. 

do. 
I.  N.  Forner,    - 


Bro't  forward, 

Rec'd  Di-aft  for  Bill  May  10,     - 
"     for  bal,  on  Bill  April  15, 

4307. 
3411.74 


Bal.  bro't  down, 

Rec'd  for  Draft  on  him,  -  -  -  - 
"  for  Bill  June  5,  -  -  -  - 
"  for  Draft  on  D.  T.  Ames,  - 
"  for  "  on  I.  S.  Preston, 
"  of  S.  D.  Everhart,  -  -  - 
"      for  Protest  Fees  of  S.  D.  E 

3082.15 
1021.72 

2060.43 


4324 

58 
24 


4307 


Bal.  bro't  down. 


895  26 
60  20 
80;56 
115 

1828163 
lOOi 
2  50 


3082 


2060 


2340 
2574 


2186 


7102  27 


98 


ACCOUNT. 


Cr 


1875. 
May  31 


Jun. 


Mdse .     -    - 
Bills  Payable, 
A.  H.  Hinman, 
Jerry  Murphy, 


Bills  Payable,  - 
G.  A.  Gaskell,  - 

do. 
P.  McGee,  -  - 
^I.  N.  Forner,  - 
W.  A.  Drake,  - 
G.  A.  Gaskell,  - 
A.  H.  Hinman, 
W.  A.  Drake,  - 
Jerry  Murphy, 
Expense,  -  - 
do.        -    - 


Bro't  forward, 

Fd  Freight,  I.  B,  6,     -    -    -    -    - 

"   Acceptance, 

"   on  account, 

"   1  mos.  Wages, 

Balance  to  N/A,  -    -    -  34ii.74  . 


Fd  Note  to  Coffin  &  Altemus,    -    - 

"   House  Rent, 

"   his  Taxes, 

"   him  on  account, 

"  Protest  Fees  on  Everhart's  Note, 

"   him  on  account, 

"    do.  do.         

"    do.  do.         

"    do.  do.        

"  him  ii:  full  to  July  1,    -    -    -  ,' 

"  Rent  of  Office  Safe,  -    .    -    .    - 

"  "        Warehouse,     -    -    -    - 

Bal.toN/A, 1021.72.   . 


^  I.  N.  Fomer,  the  customer  who  gave  the  note,  is  charged 
with  the  protest  fees.  On  June  25,  when  the  same  are  paid  by 
Everhart,  you  credit—not  Everhart,  with  whom  you  have  no  deal- 
ing, but  Fomer.  In  cases  of  this  kind  many  learners  would, 
without  a  thought  as  to  why  or  on  what  account  it  was  paid, 
credit  the  sum  received  to  the  party  sending  it.     See  1 3,  p.  51. 


1788  82 

3  40 

1479.52 

90 

50 

895, 


4307 


149 

50 

14 

5 

2 

10 

50 

90 

90 

50 

10 

500 

2060 


3082 


50 


15 


3411 


74 


1021 

2060 

7102 


99 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 


REMARKS  ON  BILL  BOOKS— RULES  FOR  COMPUTING  TIME. 

1.  Let  the  pupil  examine  carefully  the  headings  of  both  books,  and 
no  other  explanation  is  needed  of  their  use  and  manner  of  entering  not^s 
and  bills. 

2.  When  a  note  is  received  from  a  customer,  it  is  entered,  with  all 
the  particulars  required,  in  the  Bills  Receivable  Book.  In  making  up  the 
Day  Book,  the  book-keeper  transfers  it,  and  affixes  a  transfer  mark — 
thus,  y — in  ink  on  the  left  of  the  inner  money  column.  When  your 
own  note  is  given  out  in  settlement  of  a  bill  or  account,  it  is  entered  with 
almost  the  same  particulars  in  the  Bills  Payable  Book,  and  is  marked  off 
in  the  same  way  when  transferred  to  the  Day  Book. 

3.  In  receiving  or  delivering  the  notes,  either  those  of  other  persons 
or  your  own,  Bills  Receivable  or  Bills  Payable  must  always  be  debited  or 
credited  for  the  face  of  the  notes,  and  never  for  that  for  which  they  are 
received  or  given  in  payment.  When  a  note  is  not  received  or  delivered 
at  its  face,  debit  or  credit  Profit  and  Loss  or  Interest  for  the  difference. 
Thus,  if  you  buy  Z.  C.  Marlatt's  note  for  |500,  and  pay  him  in  cash  $480, 
your  books  must  show — 1st,  that  a  note  for  $500  has  been  received; 
2d,  that  1480  in  cash  has  been  delivered;  3d,  that  you  have  gained  $20 
by  the  transaction.     See  note  Bills  Receivable  account,  p.  45. 

4.  Great  care  must  be  exercised  in  extending  the  date  of  maturity  of 
bills  and  notes  on  the  Bill  Books.  A  mistake  in  this  part  of  the  book- 
keeper's work  is  a  serious  one,  invariably  resulting  in  loss  of  money  or 
credit.  To  guide  the  learner  in  the  important  work  of  determining  the 
date  of  maturity  of  notes  and  bills,  the  following  Rules  are  given : 

TO  rai)  M  DATE  OF  MATURITY  WHEN  THE  RUMIC  HfflE  IS  IN  DAYS. 

Hule.  Count  the  number  of  days  the  note  or  draft  has  to  run  after 
the  day  of  date  or  acceptance  to  and  including  the  day  of  maturity,  and 
add  three  days  of  grace. 

To  illustrate  the  Rule,  take  a  note  dated  Feb.  28,  1875,  at  thirty  days. 

100 


SET  III.— DOUBLE  ENTRY  BQOK^KE^IKa 

The  running  time  is  thirty  days,  and  expires  March  30,  to  which  we  add 
three  days  of  grace,  making  the  note  due  and  payable  on  April  2,  or 
thirty-three  days  from  its  date. 

WHEN  HE  RUfflNG  THE  IS  IN  MONTHS. 
Rule,   Count  from  the  date  to  the  corresponding  date  of  the  next 
month,  and  so  on  until  the  number  of  months  specified  on  the  face  of  the 
note  have  been  allowed,  then  add  three  days  of  grace. 

5.  Calendar  months,  just  as  they  are  found  on  the  calendar,  are  always 
understood,  and  business  usage  will  not  permit  you  to  extend  the  time  of 
payment,  because  there  may  be  a  short  month — February,  for  instance — 
in  the  term  of  months  the  draft  or  note  may  have  to  run.  To  illustrate : 
Two  notes  dated  Dec.  28  and  Dec.  31,  1874,  each  having  two  months  to 
run,  will  both  fall  due  the  same  day,  viz.,  March  3,  1 875.  It  would  be 
contrary  to  the  custom  of  merchants  and  banks  to  extend  the  time  of  the 
last  note  because  February  has  only  twenty-eight  days.  Again:  Two 
notes  dated  February  28  and  March  1,  1876,  at  one  month,  will  fall  due 
March  31  and  April  4,  one  day's  difference  in  date,  making  four  days' 
difference  in  maturity. 

6.  The  pupil  should  be  required  to  compute  the  time  of  maturity  of 
all  notes  and  bills  recorded  in  the  Bill  Books. 

7.  The  footings  of  the  money  columns  in  this  book  agree  with  the 
footings  of  their  respective  accounts  in  the  Ledger — the  Dr.  side  of  Bills 
Receivable  showing  notes  of  others  received,  and  the  Cr.  side  of  Bills 
Payable  your  own  notes  delivered  or  paid  out, 

8.  Make  no  entries  to  the  right  of  the  inner  money  column  until  after 
an  entry  in  some  other  book  shows  that  the  note  has  been  properly  dis- 
posed of. 

Note.  This  subject  is  exhaustively  illustrated  in  the  Counting  House  edition  of  "Duff's 
Mercantile,  Bank,  and  Railroad  Book-keeping." 


101 


BILIuS 


Date. 

No. 

DRAWER'S  NAME. 

IN  WHOSE  FAVOR. 

ON  WHAT  ACC'T. 

TIME. 

1875. 
Jaji. 

Apr. 
June 

2 
1 

10 
10 
5 

1 
2 
3 
4 
5 

Jno.  Gundry,  -    -    -    - 
J.  S.  Conover,     -    -    - 
S.  D.  Everhart,   -    -    - 
J.E.Scott,     -    -    -    - 
T.M.  Peirce, 

Myself, 

D.  L.  Musselman,     -    -    - 

I.  N.  Fomer,    .    -    -    -    _ 

Draft  on  D.  T.  Ames,    -    - 

"      "  I.  S.  Preston,  -   - 

My  own  (Stock),    - 
do.       (Stock),    - 
I.  N.  Fomer'e,  -    - 
R.  Nelson's,  -    -    - 
T.M.  Peirce,     -    - 

3mo8. 
3    " 
60  days. 
60    " 
5    » 

BILI.S 


Date. 


1875. 
Mar. 


June 


DRAWER'S  NAME. 


Myself, 

Hood,  Bonbright  &  Co. 

Myself, 

Joy,  Langdon  &  Co.    - 
Myself, 


IN  WHOSE  FAVOR. 


Coffin  &  Altemus,  -  -  - 
Draft  on  myself,  -  -  -  - 
D.  N.  Lord  «fc  Co.  -  -  - 
Draft  on  myself,  -  -  -  - 
Wm.  Simpson,  Sons  &  Co. 


ON  WHAT  ACC'T. 


Bill  Mar.  SO  and  Int, 


31 


Acc't  to  June  30,   - 


TIME. 


60  days. 
60  de.  sgt. 
3mos. 
30  ds.  sgt. 
2mos. 


102 


RECEIVABLE. 


WHEN  DUE. 

iMAr 

VTT 

wnrw  1 

iTn 

(TAUT  T\Tf  nnnrn  nn 

Jan. 

Feb. 

Mar. 

Apr. 

2/5 

May 

June 

9/12 

9/12 

10/ 
/13 

Juiy 

1/4 

Aug. 

Sept. 

Oct. 

Nov. 

Dec. 

AMOlTfli. 

1100 

2000 

100 

115 

1828 
5143 

63 
63 

1875. 
Apr. 

May 

June 

(I 

10  C.  B.  1  -    - 
5  Discounted. 
25  C.  B.  2  -    - 
10  C.  B.  2  -    - 
21C.  B.  2  -    - 

1100 
2000 
100 
115 
1828 
5143 

- 

63 
63 

^  The  figures  2/5  show  that  the  running  time  expires  April  2,'^and  adding  three  days  of  grace, 
makes  it  due  April  5 ;  in  other  words,  the  figures  show  that  you  have  not  neglected  to  add  days  of 


grace. 


PAYABLE. 


WHEN  DUE. 


Jan. 


Feb. 


Mar. 


Apr. 


May 


/31 


June 


29/1 


July 


Aug. 


30/2 

26/ 
/29 


Sept. 


Oct. 


Dec. 


AMOUNT. 


149 
1479 
582 
257 
1150 


mm  AND  now  paid. 


1875. 
June 

May 


C.  B.  2  -    - 

C.B.  2  -    - 

Sne  foot-notes 
below. 


AMOUNT. 


149 
1479 


See  ^  7,  p.  101. 


103 


See  f  8,  p.  101. 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


THE   DAY  BOOK. 

1.  This  book  may  be  dispensed  with,  and  the  contents  of  the 
auxiliary  books  may  be  transferred  direct  to  the  Journal.  Considerable 
time  and  writing  could  thus  be  saved.  But  believing  that  the  Day  Book 
tends  to  simplify  the  primary  steps,  we  use  it  here. 

2.  This  book  is  made  up  by  transfeiTing  the  contents  of  the  different 
auxiliary  books  into  it — one  day's  business  at  a  time.  Before  transfer- 
ring, the  student  must  compare  the  transfers  on  his  text-book  for  several 
days'  business  to  understand  the  nature  of  the  work.  He  should  endeavor 
to  determine  what  constitutes  a  proper  Day  Book  entry,  and  to  satisfy 
himself  that  when  a  Day  Book  entry  is  composed  of  such  words  as  will 
enable  him  to  make  a  proper  Journal  entry,  it  is  sufficient,  whether  worded 
the  same  as  the  text-book  or  not.  A  Day  Book  entry  is  nothing  but  a 
plain  statement  of  a  business  transaction.  It  could  be  stated  satisfac- 
torily in  a  letter  to  a  friend,  but  seems  difficult  to  make  on  a  Day  Book. 
After  the  examination,  make  up  your  Day  Book  for  one  day's  business 
on  a  slate  or  a  loose  sheet  of  paper.  Begin  with  any  auxiliary  book. 
If  the  transfers  are  correct,  you  may  go  over  the  same  day's  business 
and  transfer  it  to  your  manuscript  Day  Book  in  the  same  manner  as 
you  would  do  in  business.  While  making  these  transfers,  be  particular 
to  use  the  transfer  marks  as  directed  in  ^  Q,  p.  77,  ^  7,  p.  77,  ^  2, 
p.  79,  ^  6,  p.  87,  ^  2,  p.  95,  and  ^  2,  p.  100.  After  the  transfer  of 
a  day's  business  is  completed,  examine  the  printed  Day  Book,  and  if 
any  original  entries  are  found,  copy  them  in  your  Day  Book.  See  last 
entry  on  April  26.  Then  rule  your  Day  Book,  journalize,  post,  and 
check.     See  directions  on  pp.  38,  39,  and  40. 

3.  To  make  himself  familiar  with  the  transfer  marks,  their  use  and 
location,  the  student  may  copy  the  Day  Book  for  April  1  from  his  text- 
book. While  doing  so  he  must  keep  the  auxiliary  books  at  hand  so  as 
to  mark  each  transfer  as  fast  as  made.  Permission  to  copy  one  day's 
business  must  not  be- construed  into  permission  to  copy  all  the  Day  Book. 

104 


NEW  YORK,  April  1,  18T5. 


Q.  A.  Gaskell  begins  business  with  a  capital  of  $4000, 
as  follows  : 

Cash  in  hand,  per  C.  B.  1, 

John  Gundry's  note,  per  Bill  Book, 
J.  S.  Conover's    «      ♦'      "       " 


-  $1100. 

-  2000. 


Bo't  of  Hood,  Bonbright  &  Co.    Mdse.  at  60  ds.  I.  B.  1 
"     "  David  N.  Lord  &  Co.  do.     "90"      "     1 

"  W.  Simpson,  Sons  &  Co.  do.  "GO  "  "  1 
"  Campbell,  Knowles&  Co.  do.  "  CO  "  "  2 
"   Coffin  &  Altemus,  do.     "  C.  "2 

"   Joy,  Langdon  &  Co.  do.     "4  mos.    "    3 


P'd  Cash  for  Freight  on  Mdse.     ------- 

"      "       "   Books  and  Stationery  for  office  use,  $oO . 
"      "       "  Paper  Hanging  in  office,  -     -    -    -   18. 

"      «      <<  Postage  Stamps, 5. 


Sold  Thos.  May  Peirce, 
"    Charles  C.  Cochran, 
"    E.  N.  Hartshorn, 
"    Felton  &  Bigelow, 
'*    for  Cash, 


Mdse.  at  60  ds.  per  S.  B.  1 
do.  "  60  "  "  "  1 
do.  "  60  "  "  "  1 
do.  "  30  "  "  "  2 
do.  "      "    2 


P'd  Cash  for  bill  of  Packing  Cases, 

"  "  "  Counters  and  Shelving, 

"  "  "  Painting  Office,  &c.      -     -     -     -     $65. 

"  "  "  Post-office  Box  Rent,  -    -    -    -         2.50 

"  "  "  Store  Tools, 4.10 

"  "  "  Sundry  Freight  bills,  -    -    -    -         8.72 

"  "  "  Marine  Insurance, 2.57 


'  See  Note  4,  p.  28. 

"  We  give  the  terms  of  both  purchases  and  sales. 
10  and  11,  pp.  136, 137. 

105 


See  Forms 


900 

3100 

— 

1479 

52 

582 

465 

88 

293  3511 

147 

10 

257 

70 

2 

89 

53 

— 

1253 

60 

60;20 

21583 

20791 

6 

— 

20 

180 

71 

60 

11 

29 

4000 


3225 


55 


55 


89 


1743 


54 


282 


89 


April  10,  1875. 

Sold  I.  N.  Forner  Mdse.  per  S.  B.  2  @  30  ds.      -    -    - 

1  The  appraisers  appointed  to  determine  the  per- 
centage of  loss  on  the  goods  shipped  by  J07,  Lang- 
don  &  Co.  of  Boston,  and  insured  against  loss  or 
damage  in  the  German  Insurance  Co.,  have  awarded 
per  S.  B.  3 

//    

Rec'd  Cash  in  payment  of  Bills  Rec.  81-..-- 

//    

P'd  Cash  to  A.  H.  Hinman  (book-keeper)  on  acc't,  -     - 
tc      ((     i(  ^^  ^  Drake  (salesman)  on  acc't,     -    -    - 

// 

Gave  Coffin  &  Altemus  my  Note  No.  1,  dated  Mar.  30, 

at  60  days,  for 

And  Interest  at  rate  of  9%, 

=======  15  ===^= 

Bo't  of  Wm.  Simpson,  Sons  &  Co.  Mdse.  per  I.  B,  3    - 

//    

Sold  Richard  Nelson  Mdse.  at  60  ds.  per  S.  B.  3  -  - 
"    W.  H.  Sadler         "       "  30  "     ''       "     3    -    - 

-Rec'd  Cash  from  German  Insurance  Co.  in  full,  -  - 
"        "     for  sale  of  Damaged  Goods  at  auction,  -    - 

//    

^Accepted  Hood,  Bonbright  &  Co.'s  Draft,  at  60  days 
sight,  viz.,  Mar.  29,  for  am't  of  their  bill  of  same  date. 

====^=  20  ====== 

Sold  Thos.  May  Peirce  Mdse.  per  S.  B.  3  @  30  ds.  -  - 
"    E.  N.  Hartshorn        do.      "      **     3  @  60  "   -     - 

1  See  Note  3,  p.  89. 

"  If  an  entry  that  should  close  an  account  will  not  do  so,  the 
book-keeper  must  conclude  that  either  an  allowance  or  a  mis- 
take has  been  made  in  settlement.  If  an  allowance  has  been 
made,  it  must  be  entered  immediately. 

»  This  was  a  draft  with  the  date  of  acceptance  fixed  at  same 
,  date  as  bill  of  Mdse. 

106 


111 


103 


15 


08 


20 
25 


147 

2 


148 
99 


101 

175 


247 
261 


214 
1100 

45 

149 
345 

247 

276 

1479 

509 


23 


92 


52 


26 


April  20,  1875. 


3 


P'd  Cash  to  W.  A.  Drake,  on  acc't. 


Rec'd  of  I.  N.  Forner,  on  acc't,  S.  D.  Everhart's  Note  for 

=====   26   ===r=r= 


Sold  Felton  &  Bigelow  Mdse.  per  S.  B.  4,  at  60  days, 


P'd  Cash  for  Expenses  of  Trip  to  Boston, 

i«       «      .c  Dexter,  Abbott  &  Co.'s  bill, 

"       "       "  Donation, 

"       "      to  A.  H.  Hinman,  on  acc't, 

//    

Rec'd  of  Rich'd  Nelson,  on  acc't.  Draft  on  D.  T.  Ames, 

n     

^Allowed  the  German  Ins.  Co.  2  %  disc't  for  Cash  on  my 
Claim  for  Damages, - 

-  30  === 

3Bo't  of  D.  N.  Lord  &  Co.      Mdse.  per  I.  B.  4.    4  bills, 
"     "  Passavaut  &  Co.  do.      "     "      4.    2    " 

"     "  T.  P.  Remington,  Jr.  do.     "     "     4.    1    " 


Sold  David  N.  Lord  &  Co.  Mdse.  per  S.  B.  4, 
"  T.  P.  Remington,  Jr.  do.  "  "  4, 
"     Passavant  &  Co.  do.      "      "       4, 

"    for  Cash,  do.      "      "      4, 


P'd  Cash  to  P.  McGee  (drayman),  on  acc't,      -    -    - 
"      **      "  Jerry  Murphy  (warehouseman),  on  acc't, 
"      "      "  W.  A.  Drake,  on  acc't, 


^  Refer  to  your  I.  B.  to  see  what  this  bill  was  for,  or  you  will 
not  know  what  to  debit  for  $a3.60  in  your  Journal. 

^  This  is  termed  an  orio-inal  entry,  as  it  is  not  to  be  found 
in  any  of  the  auxiliary  books.  Copy  it  into  your  Day  Book,  as 
directed  in  the  lower  part  of  f  2,  p.  104.  This  amount  was 
allowed  on  April  15,  but  no  entry  was  made  of  it  then.  See 
Note  2,  p.  106. 

*  To  save  space  and  labor,  we  pfive  the  number  of  bills  and 
total  amount  only.    We  have  details  in  Invoice  Book. 

107 


47 

52 

16 

14 

25 

58 

01 

5 

50 

10 

60 


May  1,  1875. 

Sold  Felton  &  Bigelow  Mdse.  per  S.  B.  5, 

Rec'd  of  Felton  &  Bigelow,  per  W.  A.  Miller,  Cash  in 
payment  of  their  bill  April  5, 

tr     . 

P'd  G.  A.  Gaskell,  on  acc't.  Cash  for  House  Rent,   -     - 

.======   5  - 

Bo't  of  Amoskeag  Manf'g  Co.  Mdse.  per  I.  B.  5,      -    - 
Ret'd  by  Felton  &  Bigelow  do.      "      "5,      -    - 

// 

Sold  D.  N.  Lord  &  Co.  Mdse.  per  S.  B.  5, 

"    Thos.  May  Peirce     do.     "      "     5,  @  60  ds.  -    - 
"    E.  N.  Hartshorn      do.      «      "     5,  @  60  "    -    - 

_ - .     // 

Rec'd  Cash  from  Felton  &  Bigelow,  on  acc't,  -     -    -     - 
1    (<        SI    fQp  j^  g  Conover's  Note,  discounted,     -    - 

//    

P'd  Cash  for  Freight  on  Mdse. 

Id      ii      ((  Discount  on  J.  S.  Conover's  Note,  -    -    - 
"      "     to  A.  H.  Hinman,  on  acc't, 

10    r======:. 

Sold  D.  N.  Lord  &  Co.  Mdse.  per  S.  B.  5, 

"    I.  N.  Forner  do.      "      "     6,  Cash,  -    -    - 

_____     //    

P'd  Cash  to  Amoskeag  Manf'g  Co.  on  sgt.  D'ft,  -    -    - 

"       "      "  W.  A.  Drake,  on  acc't, 

"       "     "  G.  A.  Gaskell, "      " 

// 

Gave  David  N.  Lord  my  Note  No.  3,  at  3  mos.,  in  set- 
tlement of  bill  Mar.  31, 

^  The  face  of  the  note  is  entered  as  money  received,  and,  in  the 
next  entry,  the  discount  is  entered  as  money  paid  out.  Make 
an  entry  in  the  "Bill  Book"  to  show  "how  "disposed  of."  See 
T  3,  p.  100. 

108 


1456 
23 


21 
116 
150 


50 


150 
2000 


155 

207 
50 

1479 

288 
2150 


37 


91 


50 


46 


60 


10 


1456 

45 

100 


50 


48 


71 


1601 


582 


60 


32 


50 


May  20,  1875. 

Sold  Passavant  &  Co.  Mdse.  per  S.  B.  6,      -    -    - 

"     T.  P.  Remington,  Jr.      do.      "      "6,      -    -     - 

_^ n     

iRec'd  Cash  of  I.  N,  Forner  for  bill  of  May  10,    -    -     - 
**      **  W.  H.  Sadler,  on  acc't  of  Ml  Apr.  15,  - 

======  25  === 

P'd  Cash  to  W,  A.  Drake,  on  acc't, 

1  <(      <t      <<  Y\i%  our  Draft  on  I.  N.  Forner,  returned,   - 

=====  31  ===== 

Bo't  of  A.  &  W.  Sprague  Mfg.  Co.  Mdse.  per  I.  B.  5, 60  ds. 
"     "  D.  N.  Lord  &  Co.  do.      "      "    5,1  bill. 

"     "  T.  P,  Remington,  Jr.  do.     "     "    5, 6  " 

"     "  Passavant  &  Co.  do.     "     "    5, 3  " 

n     

Sold  Thos.  May  Peirce  Mdse.  per  S.  B.  6,  60  ds.  -  - 
"  Passavant  &  Co.  do.  "  "  6,  -  -  -  -  - 
"    Felton  &  Bigelow      do.     "       **     6,  60  da.      -     - 

//    

Paid  Cash  for  Freight  on  Mdse. 

3  "        "       "   my  Acceptance  No.  2, 

"        "     to  A.  H.  Hinman,  on  acc't, 

"        "     "  Jerry  Murphy  for  1  mos.  wages,     -     -     - 

//     

Roc'd  Cash  of  I.  N.  Forner  for  bill  May  10,  -  -  -  - 
"        "      "  W.  H.  Sadler  for  bal.  on  bill  Apr.  15,    - 

—  June  1  ' 

Sold  David  N.  Lord  &  Co.  Mdse.  per  S.  B.  7,  -  -  - 
"     T.  P.  Remington,  Jr.      do.      "      "7,      -    -    - 

//     : 

P'd  Cash  for  my  Note  in  favor  of  CoflBn  &  Altemus,  - 
"      "     to  G.  A.  Gaskell,  on  acc't, 

^  Wc  ffave  Forner  credit  with  this  draft— Cash  Book,  May  20— 
and  tlierefore  charj^e  him  with  what  it  coets  to  take  it  up,  i.  e., 
to  pay  it  when  returned  unpaid.    Sec  1  3,  p.  51. 

2  Make  an  entry  in  Bill  Book  to  ehow  "  when  and  how  paid." 

109 


200 
121 


58 

72 

75 

— 

80 

58 

72 

177 

40 

18 

91 

23 

48 

— 

210 

50 

360 

48 

71 

3 

40 

1479 

52 

90 

50 

— 

58 

72 

24 

10 

50 

40 

13 

20 

149 

42 

64 

80 

13 


321 


133 


13 


72 


72 


362 


619 


1622 


82 


63 


214 


41 


21 


93 


83 


60 


23 


6 


June  5,  1875. 

Sold  C.  C.  Cochran  Mdse.  per  S.  B.  7,  at  60  ds.  -    -    - 

. : //        

Rec'd  of  Thos.  May  Peirce  his  Draft,  at  5  days,  on  I. 
S.  Preston,  in  full  to  date, 

=====  10 
Sold  Passavant  &  Co.  Mdse.  per  S.  B.  7, 

rf     

Rec'd  of  C.  C.  Cochran  for  my  Draft  on  him,      -    -     - 

"      "      "  "  "  bill  June  5, 

1    "     for  Nelson's  Draft  on  Ames,  No.  4, 

//    

2 Allowed  C.  C.  Cochran  2%  discount  on  bill  June  5  for 
Cash, 

/f    

P'd  Cash  to  P.  McGee,  on  acc't, 

===^==  21  ==^=^== 

Sold  David  N.  Lord  &  Co.  Mdse.  per  S.  B.  7,  -     -     -     - 
"    Passavant  &  Co.  do.      "      "     7,  -    -    -    - 

^ //    

Rec'd  Cash  for  Draft  on  I.  S.  Preston,  collected,  No.  5, 

ff    

3  P'd  Cash  for  protest  fees  on  Note  from  I.  N.  Forner,  - 
"      "      to  W.  A.  Drake,  on  acc't,  ------- 

"      "      to  Q.  A.  Gaskell,     "  

====  25  =^=== 

Sold  T.  &  G.  Gallagher  Mdse.  per  S.  B.  7,      -    -     -     - 

ff    

^Rec'd  Cash  of  S.  D.  Everhart  in  payment  of  Note,  -    - 
"        "  "  "        for  protest  fees,     -     -     - 

^  Make  an  entry  in  Bill  Book  to  show  "when  and  how  dis- 
posed of." 

"  See  Note  2,  p.  107.  This  allowance  was  agreed  upon  at  time 
of  sale.    See  Sales  Book,  June  5,  p.  94. 

3  See  Note  1  in  Cash  Book,  p.  99. 

*  See  Note  1  above ;  also  Note  1,  p.  99. 

110 


60 

80 

115 


13  20 
13  20 


50 


100 
2  50 


82 

1828 
13 

255 

1 
5 

26 

1828 


20 

63 
20 

76 
64 


627 


102 


June  25,  1875. 

P'd  Cash,  to  A.  H.  Hinman,  on  acc't, 

"      «      "  W.  A.  Drake,       "  

"      "      "  Jerry  Murpliy,  in  full  to  July  1,  -     -     -     - 

Bo't  of  W.  Simpson,  Sons  &  Co.  Mdse.  per  I.  B.  6,  @  60  ds. 

"     "  T.  P.  Remington,  Jr.        do.      "     "     6,  -     -     - 

P.  McGee's  biU  of  Cartage,  "     "    6,  -    -    - 

//    

P'd  Cash  for  3  mos.  B«nt  of  Office  Safe, 

"      "       "  3    "         "      "  Warehouse, 

'. ff    

Accepted  Joy,  Langdon  &  Co.'s  Draft  for  -     -     -     -     - 

ff    

^Gave  Wm.  Simpson,  Sons  &  Co.  my  Note,  at  2  mos., 

in  settlement  of  acc't  due  by  average  June  26,     -    - 

2  mos.  Interest  added  for  extra  time, 

ff    

Due  A.  H.  Hinman  for  3  mos.  Salary  to  date,      -     -     - 
"    W.  A.  Drake     «    3    "         "  "  .     .     - 

"    Jerry  Murphy  "    3     "  "  '*  .     .     . 

'  Rule  for  equating  time  on  accounts  will  be  found  on  p.  178. 

Note.  The  teacher  should  direct  the  learner  to  again  peruse  the 
directions  on  p.  74, 


90 
90 
50 


230 


327 
80 
21 


429 


20 


10 

500 


510 


1138 
11 


300 
270 
150 


257 


1150 


70 


06 


r20 


111 


JOURNAL. 
NEW  YORK,  April  1,  1875. 


Sundries  Dr.  To  Stock, 
Cash,  ------ 

Bills  Receivable,  -    - 


Mdse.  Dr.  To  Sundries,  -  - 
iTo  Hood,  Bonbriglit  &  Co.  - 
"  David  N.  Lord  &  Co.  -  - 
"  Wm.  Simpson,  Sons  &  Co, 
"  Campbell,  Knowles  &  Co, 
**  Coffin  &  Altemus,  -  -  - 
"  Joy,  Langdon  &  Co.    -    -  " 


-  Mar.  29,  60  ds. 

-  "      31,  90  " 

-  "      29,  60  " 

-  "     29,  60  " 

-  "      30,  cash. 

-  "      30,  4  mos 


Sunds,  To  Cash, 
Mdse.  -  -  - 
Expense,      -    - 


Sunds.  To  Mdse, 

2Thos.  May  Peirce, 60  ds, 

Chas.  C.  Cochran, 60  " 

E.  N.  Hartshorn, 60  " 

Felton  &  Bigelow, 80  " 

Cash,  - 


Sunds.  To  Cash, 
Mdse,  -  -  - 
Store  Fixtures, 
Expense,  -  - 
Mdse.-    -    -    - 


^  The  date  of  this  and  subsequent  invoices  may  he  entered  in 
the  Ledger  instead  of  the  date  of  entry  here.  When  this  is  done, 
and  the  term  of  credit  given  as  in  Hood,  Bonbright  &  Co,'8 
acc't,  the  book-keeper  can  determine  the  exact  maturity  of  each 
bill  by  the  Ledger  acc't. 

"  The  term  of  credit,  or  date  of  maturity,  may  be  given  for  this 
and  subsequent  sales  in  the  Ledger.  We  illustrate  both  plans  in 
the  accounts  of  Thos,  May  Peirce  and  C.  C.  Cochi-an.  Refer  to 
them. 

112 


4000 


900 
3100 


3325 


55 


1479 
582 
465 
293 
147 
257 


55 


52 


2 
53 


1743  54 


1253 

60 

215 

207 

6 


20 

180 

71 

11 


282 


April  10,  1875. 

Sunds.  Dr.  To  Mdse. 

I.  N.  Forner, 

German  Insurance  Co. 

//    

Cash  Dr. 

To  Bills  Receivable, 

n     

Sunds.  Dr.  To  Cash, 

A.  H.  Hinman, 

W.  A.  Drake, 

. // 

Sunds.  Dr.  To  Bills  Payable, 

Coffin  &  Altemus, 

Interest, 

=====  15  ===== 

Mdse.  Dr.     -- 

To  Wm.  Simpson,  Sons  &  Co. 

It    . — 

Sunds.  To  Mdse. 

Richard  Nelson, 

W.  H.  Sadler, 

n      — 

Cash  Dr.  To  Sunds. 

To  German  Insurance  Co. - 

"   Mdse. -    .    - 

-  //    

Hood,  Bonbright  &  Co.  Dr. -    .    . 

To  Bills  Payable, 

=^===  20  ========= 

Sunds.  To  Mdse. -    -    - 

Thos.  May  Peirce,    --- 

E.  N.  Hartshorn, 

Note.  If  the  learner  finds  it  difficult  to  journalize  this  set,  have 
him  review  the  exercises  beginning  on  p.  53. 

113 


H 


111 
103 


1100 


20 
25 


147 
2 


345 


148 


276 


1479 


247 
261 


20 


92 


214 

1100 
45 

149 

345 
247 


23 


42 


20 


52 


101 
175 


1479 


509 


53 


26 


April  20,  1875. 

Wm.  A.  Drake,  Dr. 

To  Cash,      .    -    - 

It 

Bills  Receivable,  Dr. 

To  I.  N.  Forner, 

=====  26  ===^= 

Felton  &  Bigelow,  Dr. 

ToMdse. 

n 

Sunds.  Dr.  To  Cash, 

Expense, 

Mdse. 

Profit  &  Loss, 

A.  H.  Hinman, 

tt    

Bills  Receivable,  Dr. 

To  Richd.  Nelson, 

n      

Interest,  Dr. 

To  German  Ins.  Co. 

=^===z=  30  - 

Mdse.  Dr.  To  Sunds. 

To  D.  N.  Lord  &  Co. 4  Bills 

"   Passavant  &  Co.       -    -    - 2     " 

"   T.  P.  Remington,  Jr. 

n      

Sunds.  Dr.  To  Mdse. 

D.  N.  Lord  «&  Co. 

T.  P.  Remington,  Jr. • 

Passavant  &  Co. 

Cash,  ---. 

*  See  Note  3,  p.  107. 
114 


35 


100 


124 


115 


134 


40 


60 


06 


85 


47  52 

16  I 
14  25 
58  011 


35 
100 

124 
124 


40 


115 


06 


135 


78 


April  30,  1875 

Sundries  Dr.  To  Cash, 

P.  McGee, 

Jerry  Murphy,      _.-._... 
W.  A.  Drake, 

===^=^==^^    May  1    == 

Felton  &  Bigelow,  Dr. 

ToMdse. 

// 

Cash  Dr. 

To  Felton  &  Bigelow, 

// 

G.  A.  Gaskell,  Dr. 

To  Cash, 

Mdse.  Dr.  To  Sunds. 

To  Amoskeag  Mfg.  Co. 

"  Felton  &  Bigelow, 

// 

Sunds.  To  Mdse. .     .  . 

D.  N.  Lord  &  Co. 

Thos.  May  Peirce, ■ 

E.  N.  Hartshorn, ■ 

ff 

Cash  Dr.  To  Sunds. 

To  Felton  &  Bigelow, ■ 

"   Bills  Receivable, 

// 

Sunds.  To  Cash,    ---.--... 

Mdse. 

Interest,  - 

A.  H.  Hinman, 

115 


5 

50 
10 


65 


155 


207 


37 


91 


155 


207 


37 


91 


50 


50 


1479 


21 
116 
150 


50 


1456 
23 


288 


50 


46 


2150 


150 
2000 


48 


60 


60 


30 
10 


May  10,  1875. 


Sundries  To  Mdse. 
D.  N.  Lord  &  Co.  ■ 
I.  N.  Forner,     - 


Sunds.  to  Cash, 
Amoskeag  Mfg.  Co. 
W.  A.  Drake,  -     - 
G.  A.  Gaskell.  -    - 


D.  N.  Lord  &  Co.,  Dr. 
To  Bills  Payable,  -    - 


^=====^:=^   20 

Sunds.  Dr.  To  Mdse.  -    -  - 

Passavant  &  Co.    -    -    -  - 

T.  P.  Remington,  Jr.      -  - 

rr 

Cash  Dr.  To  Sunds.    -    -  - 

To  I.  N.  Forner,    -     -     -  - 

"    W.H.Sadler,-    -    -  - 


25 


Sunds.  To  Cash, 
W.  A  Drake,  - 
I.  N.  Forner,     - 


31 


Mdse.  Dr.  To  Sunds.      - 

To  A.  &  W.  Sprague,  Mfg.  Co. 

D.  N.  Lord  &  Co. 1  Bill 

T.  P.  Remington,  Jr. 6    " 

Passavant  &  Co. 3    " 

116 


1456 

45 

100 


582 


200 
121 


133 


50 


13 


72 


3G2 


72 


41 


May  31,  1875. 

Sunds.  To  Mdse. 

Thos.  May  Peirce, 

Passavant  &  Co.    - 

Felton  &  Bigelow, 

//    

Sunds.  To  Cash, 

Mdse. 

Bills  Payable, 

A.  H.  Hinman, 

Jerry  Murphy, 

. //    

Cash  Dr.  To  Sunds. »    - 

To  I.  N.  Forner, 

"   W.H.Sadler, 

-  June  1  ■ 

Sunds.  To  Mdse. 

D.  N.  Lord  &  Co. 

T.  P.  Remington,  Jr. 

//    

Sunds.  To  Cash, 

Bills  Payable, .    .    . 

G.  A.  Gaskell, 

=====   5    == 

C.  C.  Cochrane,  Dr.  - 

To  Mdse. 

.  //  ; 

Bills  Receivable,  Dr. 

To  Thos.  May  Peirce, 

=zz.==    10     

Passavant  &  Co.  Dr. 

To  Mdse. 

117 


e 


210 
360 

48 


8 

1479 

90 

50 


82 


82 


619 


1622 


21 


93 


60 


149 
64 


42 


214 


22 


20 


20 


1828 


63 


1828 


63 


13 


20 


1320 


June  10,  1875. 

Cash  Dr.  To  Sunds, 

To  C.  C.  Cochran,       - 

"  Bills  Receivable, 

//    

Interest,  Dr.      - 

To  C.  C.  Cochran, 

//    

P.  McGee,  Dr. 

To  Cash, 

z==zrr==rr===    21    == 

Sunds.  To  Mdse. 

D.  N.  Lord  &  Co. 

Passavant  &Co. 

//    

Cash  Dr. 

To  Bills  Receivable, 

//    

Sunds.  Dr.  To  Cash, 

I.  N.  Forner, 

W.  A.  Drake, 

G.  A,  Gaskell, 

T.  &  G.  Gallagher,  Dr.  - 

To  Mdse. 

tr     

Cash  Dr.  To  Sunds. 

To  Bills  Receivable, 

"    I.  N.  Forner,    -    - 

118 


255 


76 


140 

115 


76 


64 


64 


1828 


63 


40 


1828 


62 


63 


50 


2  50 
10 
50 


627 


102 


10 


50 


627 


100 

2 


10 


50 


June  25,  1875. 


8 


Sunds.  To  Cash^ 
A.  H.  Hinman, 
W.  A.  Drake,  - 
Jerry  Murphy, 


30 


Mdse.  Dr.  To  Sunds.     -    -    • 

To  Wm.  Simpson,  Sons  &  Co, 

*'  T.  P.  Remington,  Jr.  -    ■ 

"  P.  McGee, - 


Expense,  Dr.    -    -    -    - 
To  Cash, 

Joy,  Langdon  &  Co.  Dr. 
To  Bills  Payable,     -    - 


Sunds.  Dr.  To  Bills  Payable, 
Wm.  Simpson,  Sons  &  Co.  - 
Interest, 


Expense  Dr.  To  Sunds. 

To  A.  H.  Hinman,  - 
"  W.  A.  Drake,  - 
"  Jerry  Murphy,    - 


90 
90 
50 


230 


429 


20 


327 

80 
21 


60 


510 


510 


257 


70 


1138 
11: 


720 


257 


1150 


70 


06 


300 
270 
150 


119 


SET  III.— DOUBLE  ENTKY  BOOK-KEEPING. 


THE   LEDGER. 

1.  After  the  student  has  compared  and  checked  the  transfers  for  one 
day's  business  from  Day  Book  to  Journal,  he  is  ready  to  transfer  the 
entries  from  Journal  to  Ledger,  i.  e.,  to  post  his  Journal.  See  directions 
for  "  Opening  and  Posting,"  pp.  38,  39,  40.  In  business,  the  accounts  in 
the  Ledger  are  opened  and  indexed  as  required  by  the  transactions,  and 
as  much  space  is  given  to  each  account  as  the  book-keeper  thinks  proper. 
Here  the  learner  opens  all  accounts  before  posting. 

2.  At  the  end  of  each  month  after  your  posting  is  checked,  as  directed 
on  p.  40,  take  off  a  proof  sheet  or  "Trial  Balance."  See  ^  10,  p. 
40,  and  Form,  p.  49.  As  you  add  the  open  accounts,  place  the  footings 
in  pencil  close  under  dollars  and  cents  on  the  Dr.  and  Cr.  sides.  You  will 
then  have  only  one  month's  posting  to  add  to  the  footings  of  the  pre- 
vious month  for  the  next  monthly  proof  sheet.  When  taking  off  proof 
sheet  preparatory  to  closing  the  Ledger^  the  pencil  footings,  instead  of 
being  placed  close  under  dollars  and  cents,  are  placed  in  the  explanation 
column,  to  the  left  of  folio  column.  The  remainder,  after  subtracting  the 
lesser  amount  from  the  greater,  is  termed  the  "  Balance."  Insert  this  bal- 
ance in  your  proof  sheet,  with  the  name  of  the  account  it  is  taken  from. 

3.  If  the  proof  sheet  does  not  show  the  debits  and  credits  to  be  equal, 
proceed  as  directed  in  •[[  1,'p.  V4. 

4.  When  ready  for  closing,  read  the  directions  and  commit  the  Rules 
for  closing  the  Ledger  on  p.  41.  To  understand  the  application  of  Rules, 
the  learner  must  be  familiar  with  classification  of  accounts.     See  p.  72. 

5.  In  closing  the  Ledger,  in  business,  it  is  not  necessary  to  close  any 
of  the  unsettled  personal  accounts.  Find  the  "  Balance "  in  pencil,  as 
directed  above,  and  transfer  it  to  the  proper  side  of  Balance  Acc't.  Re- 
fer to  some  of  the  personal  acc'ts  and  see  how  thi§  is  done.  The  teacher 
may,  if  he  thinks  proper,  direct  the  pupil  to  close  all  personal  accounts, 
and  bring  down  the  balance,  as  in  Ledger,  Set  II.  Learners  are  apt  to 
neglect  their  transfers  to  Profit  and  Loss  and  Balance  when  closing. 

120 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 


INDEX. 


Amoskeag  Manf'g  Co.     .    .    .10 

Bills  Receivable, 4 

Bills  Payable, 8 

Balance  Account, 10 

Cash, 2 

Campbell,  Knowles  &  Co.     .     .  5 

Cofifin  &  Altemus, 5 

Cochran,  Chas.  C 5 

Drake,  W.  A 7 

Expense  Acc't, 6 

Felton  &  Bigelow, 6 

Forner,  I.  N. 6 

Gaskell,  G.A 1 

German  Ins.  Co 7 

Gallagher,  T.  &  G 10 

Hood,  Bonbright  &  Co.  .     .     .  3 

Hartshorn,  E.  N 6 

Hinman,  A.  H 7 

Interest,    . 8 

Joy,  Langdon  &  Co 5 

K 

Lord,  David  N.  &  Co.      ...  4 


Mdse 3 

Murphy,  Jerry, 9 

McGee,  P 9 

Nelson,  Richard, 8 

O 
Profit  and  Loss, 1 

Peirce,  Thomas  May,  ....  5 
Passavant  &  Co.      .     .     .     .     .     9 

Remington,  T.  P.,  Jr 9 

Stock  Account, 1 

Simpson,  Wm.  Sons  &  Co.    .     .     4 

Store  Fixtures, 7 

Sadler,  W.H 8 

Sprague  Manf'g  Co 10 

T 

U 

V 

W 

X 

Y 

Z 


Hfote.  In  ■business,  the  Index  is  in  book  form,  with  one  or  more  pages  reserved  for  each 
letter  of  the  alphabet.  The  leaves  are  cut  so  as  to  make  an  offset  on  which  the  letters  of  the 
alphabet  are  pasted.  Then  by  placing  the  thumb  on  a  letter,  the  book  can  be  thrown  open  to 
find  any  name  beginning  with  that  letter.  In  business,  the  book-keeper,  to  save  time,  may 
use  what  is  called  the  "Vowel  Index."  In  this,  two  pages  are  required  for  each  letter  of  the 
alphabet.  These  pages  are  divided  by  red  lines  into  six  columns— three  on  each  page.  Each 
is  headed  with  a  vowel— thus,  A,  E,  I,  O,  U,  Y.  Names  are  distributed  as  indicated  by  their 
second  letter,  if  a  vowel.  Thus,  to  index  Felton  &  Bigelow,  turn  to  "  F  "  and  enter  it  in  the 
column  headed  "  E."  To  index  I.  N.  Forner,  enter  it  in  the  column  headed  "  O."  To  have 
the  learner  understand  this  form,  the  teacher  should  illustrate  it. 

121 


1 


STOCK  ACCOUNT. 


Cr. 


1875. 
June 


30 


To  Q.  A.  Gaskell,  f. 
"  Profit  &  Loss,  f. 
"  Balance,  I'si-^^  /. 


1875. 

1 

364 

80 

Apr. 

1 

1 

886 

99 

10 

S84B 
4000 

Sl\ 

July 

1 

By  Sundries, 


1151.79 

(848.21 


By  Bal.  bro't  down, 


1 

4000 

4000 

2848 

21 


Answer  the  questions  under  Stock  acc't,  p.  43.    N.B.  The  teacher  must  ask  the  questions, 
and  not  expect  the  pupil  to  give  the  answers  as  in  the  text-book  without  the  question. 


PROFIT  AND  LOSS. 


1875. 
Apr. 
June 


To  Cash,  -     -     - 
"   Expense, 
"  Interest,  -    - 

1423. 
536.01 
- Net  Loss,  886.99 


1875. 

3 

5 

June 

30 

6 

1370 

60 

" 

8 

47 

40 

1423 

= 

By  Mdse. 
Stock, 


536j01 
886|99 


1423 


Answer  the  questions  under  Profit  and  Loss,  p.  48. 


G.  A.  GASKELL.. 


1875. 

May 

1 

<( 

10 

June 

1 

<( 

21 

To  Cash, 
do. 
do. 
do. 


1875. 

4 

50 

June 

30 

5 

100 

6 

64 

80 

7 

50 
264 

80 

By  Stock, 


264 


264 


80 


80 


This  account  shows  what  the  owner  has  drawn  out,  and  is  closed  into  Stock.  The  learner 
can  see  that  a  loss  in  business  has  the  same  effect  in  reducing  the  capital  as  money  or  goods 
withdrawn  by  the  owner  would  have.  Accounts  of  this  kind  are  kept  with  owners  to  avoid 
making  numerous  entries  in  the  Stock  acc't. 

122 


Dr 


CASH  ACCOUNT. 


Cr 


1875. 
Apr. 


May 


June 


July 


1  To  Stock, 


Mdse. 
Bills  Rec. 
Sunds.     - 
Mdse. 


To  Bal.  bro't  down, 
Felt.  &  Bigelow, 
Sunds.     -     -    - 
do.        -     -     - 
do.        -     -     - 


4307. 
3411.74 


To  Bal.  bro't  down, 
Sunds.  -  -  - 
Bills  Rec.  -  - 
Sunds.     -    -    - 

3082.15 


2060.43 


To  Bal.  bro't  down. 

This  account  is  bal- 
anced monthly,  and 
must  agree  with  the 
Cash  Book,  pp.  96-98, 


900 

6 

1100 

276 

58 


3340 


1732 
207 

2150 
133 

82 


4307 


895 

255 

1828 

103 


3082 


2060 


93 


15 


43 


1875, 
Apr. 


May 


June 


By  Sunds.    -    - 

"  do.        -    - 

"  do.        -    - 

"  W.  A.  Drake, 

"  Sunds.     -     - 

"  do.        -    - 

"  Balance,  ^os.sf 


By  G.  A.  Gaskell, 

Sunds.     -    - 

do.        -    - 

do.        -    - 

do.        -    - 

Balance,  34n.74 


By  Sunds.  -  -  - 
"  do.  -  -  - 
**  do.  -  -  - 
"  do.  -  .  - 
**  Expense,  -  - 
"  Balance,  1021.72^. 


Answer  the  questions 
under  Cash  acc't,  p.  43. 


123 


3 

JDr. 


MDSE.  ACCOUNT. 


Cr. 


1875. 

1875. 

Apr. 

1 

To  Sunds.     -    -     - 

1 

3225 

55 

Apr. 

5 

By  Sunds.     -    -    - 

1 

1743 

54 

" 

"  Cash,       -    -    - 

" 

2 

89 

" 

10 

"     do.        -    -    - 

2 

214 

23 

(( 

5 

"      do.        -    -    •- 

" 

20 

« 

15 

"      do.        ... 

t( 

247 

60 

« 

" 

"      do.        ... 

« 

11 

29 

(f 

" 

"  Cash,       -     -     - 

(I 

175 

90 

it 

15 

"  Simp.  Sons  &  Co. 

2 

345 

20 

« 

20 

"  Sunds.     -     -     - 

t( 

509 

26 

t( 

26 

"  Cash,       -    -     - 

3 

33 

60 

ct 

26 

"  Felt.  &  Bigelow, 

3 

124 

40 

*' 

80 

"  Sunds.     -    -    - 

(( 

134 

85 

« 

30 

"  Sunds.     3150.71  - 

'< 

135 

78 

May 

5 

"         do.          *  3773.38. 

4 

1479 

50 

May 

1 

"  Felt.  &  Bigelow, 

4 

155 

37 

" 

" 

"  Cash,       -    -    - 

« 

8 

60 

" 

5 

"  Sunds.     -     -     - 

" 

288 

46 

<t 

31 

"  Sunds.     -    -    - 

5 

362 

41 

" 

10 

"      do.        -    -    - 

5 

71 

32 

" 

" 

"    Cash,            5627.29    - 

6 

3 

40 

« 

20 

"      do.        -    -    - 

" 

321 

13 

June 

30 

"    Sunds.        6056.49    - 

8 

429 

20 

" 

31 

**         do.             4CU6.20    - 

6 

619 

21 

(( 

" 

"  Profit  &  Loss,  f. 

1 

536 

01 

June 

1 
5 

"       do.         -     -     - 
"  C.  C.  Cochran,  - 

63 

82 

60 
20 

^^ 

10 
21 
25 

"  Passavant  &  Co. 
"  Sunds.     -     -     - 
"  T.  &  G.  Gallag'r, 

7 

13 

26 

627 

20 
40 
10 

^-^ 

"  t 

30 

"  Bal  on  hand,  f. 

6592.50 

10 

1173 

80 

6592 

50 

6056.49 

6592 

50 

1 

1173 

80 

Gain,  536.01 

— 

July 

To  Bal.  hro't  down, 

*  Compare  the  footings  of  this  acc't  for  April  with  Invoice  Book  and  Sales  Book  footings  for 
game  month. 

t  See  Note  1,  p.  86 ;  T  14,  p.  42.      Answer  the  questions  under  Mdse.  acc't,  p.  44. 


HOOD,     Philadelphia,  Pa,     BOKBRIGHT  &  CO. 


1875. 
Apr. 


15 


To  Bills  Payable,  - 


1479 


52 


1875. 
Mar. 

1 


29 


By  Mdse.        60  ds. 


1479 


52 


Answer  questions  under  H.  K.  Thurher  &  Co.'s  acc't,  p.  47. 

^  We  post  the  date  of  purchase  and  time  (60  days)  as  an  illustration  to  show  that  accounts 
may  be  kept  so  that  the  book-keeper  can  watch  the  maturity  of  bills  bought  or  eokl.  See 
Note  1,  p.  112. 

124 


Dr, 


BILLS  RECEIVABLE. 


Cr 


1875. 

Apr. 

(( 

June 


To  Stock,  -  -  - 
"  I.  N.  Forner,  - 
"  Ricli'd  Nelson, - 
"   T.  M.  Peirce,    - 


1875. 

1 

1 

3100 

Apr. 

10 

3 

100 

May- 

5 

" 

115 

June 

10 

6 

1828 
5143 

63 
63 

« 

1 

21 
25 

By  Cash,  - 
do.  - 
do.  - 
do.  - 
do.    - 


2 

1100 

4 

2000 

7 

115 

" 

1828 

« 

100 

5143 

Answer  questions  under  Bills  Receivable  acc't,  p. 


DAVID  N.    Cittj,    LORD  &  CO. 


1875. 

1875. 

Apr. 

30 

ToMdse.  -    -    -    - 

3 

47 

52 

Apr. 

1 

By  Mdse.      -    -    - 

1 

582 

May 

5 

"     do.    -    -    -    - 

4 

21 

70 

" 

30 

"      do.     4  bills,    - 

3 

46 

05 

tc 

10 

"     do.    -    -    -    - 

5 

12 

60 

May 

31 

"      do.     1    " 

5 

46 

18 

tt 

« 

"  Bills  Payable,  - 

« 

582 

674.23 

June 

1 

«  Mdse.-    -    -     - 

6 

50 

40 

« 

21 

"     do.    -    -    -    - 

727.42 
674.23 

*  53.19 

7 

13 

20 

*  See  1  5,  p.  120. 

Answer  questions  under  Belt  &  CUley's  acc't,  p.  46. 


WM.  SIMPSON,     Baltimore,  3Id.     SONS  &  CO. 


1875. 1 
June  30 


To  Bins  Payable, 


8 

1138 
1138 

68 
68 

1875. 
Apr. 

June 

1 

15 
30 

By  Mdse. 
"     do. 
"     do. 


See  note  under  Howell,  Barr  &  Co.'s  acc't,  p.  47. 
125 


Dr.       CAMPBELL.,  JPhiiadeiphia,  Pa.   KNOWLES  &  CO.       Or, 


1875. 

Apr. 

5 

" 

20 

May 

5 

'61 

To  Mdse. 
do.   - 
do.   - 
do.   - 


160  ds. 


1875. 

1 

1253 

60 

June 

5 

2 

247 

83 

4 

116 

70 

6 

210 

1828 

50 
63 

By  Bills  Rec. 


1875. 
Apr. 

1 

By  Mdse.      -    -    - 

1 

293  35 

Answer  questions  under  Belt  &  Cilley's  acc't,  p.  46. 
COFFIN  &     Baltimore,  Md.     ALTEMUS. 

1875. 
Apr. 

10 

To  Bills  Payable,  - 

2 

147 

10 

;1875. 
'Apr. 

1 

By  Mdse.      -    -    - 

1 

147 

10 

JOY,     Boston,  Mass.      LANGDON  &  CO. 

1875: 
June 

30 

To  Bills  Payable,  - 

8 

257 

70 

1875. 
Apr. 

1 

By  Mdse.      -    -    - 

1 

257 

70 

THOMAS  MAY     Philadelphia,  Pa.     PEIRCE. 

1828 


1828 


63 


63 


^  See  Note  2,  p.  112. 
CHARLES  C.    Pittsburgh,  Pa.    COCHRAN. 


1875. 
Apr. 
June 


To  Mdse.     1  June  4 
"      do.    -    -    -     - 


142 


1875. 
June 


10 


By  Cash,  ■- 

"  Interest, 


140176 
164 

40 


142 


^  See  Note  2,  p.  112. 
126 


Br, 


EXPENSE  ACCOUNT. 


Cr. 


1875. 
Apr. 

« 
June 


ToCasli,  . 
"  do.  - 
"  do.  - 
"  do.  . 
"  Sunds. 


1875. 

1 

53 

71 

60 

June 

30 

3 

16 

8 

510 

720 

1370 

60 

By  Profit  &  Loss,  f.  1    1870 


See  note  at  foot  of  p.  65,  and  Classification  of  Accounts,  pp.  72,  73;  also  Rule  in.,  p.  41. 
E.  N.    Mt.  Union,  o.    HARTSHORN. 


1875. 
Apr. 

May 


To  Mdse. 
"      do. 
"      do. 


1 

215 

83 

2 

261 

43 

4 

150 

06 

Answer  questions  under  T.  G.  Stewart  &  Co.  account,  p.  47. 
FELTON     Cleveland,  o.    &  BTGELOW. 


1875. 

Apr. 

5 

" 

26 

May 

1 

t< 

31 

To  Mdse. 
"      do. 
"      do. 
"      do. 


380.91 
166.48 


1875. 

1 

207 

91 

May 

1 

3 

124 

401 

(( 

5 

4 

155 

37 

tt 

" 

6 

48 

71 

By  Cash,  -    -    -    - 

"  Mdse.  returned, 
**  Cash,  -    -    -    . 

380.91 


4 

207 

« 

23 

(( 

150 

I.  N.     Pittsburgh,  Fa.     FORNER. 


1875. 
Apr. 
May 

June 


To  Mdse. 
"      do. 
"   Cash, 
"      do. 


Ill 

58 


1875. 
Apr. 
May 

June 


20  By  Bills  Rec.  ■ 

20  "  Cash,  -    -  . 

31   "     do.    -    -  ■ 

25   *'     do.    -    -  ■ 

219.94 


3 

100 

5 

58 

6 

58 

7 

2 

127 


7 

Dr. 

STORE 

FIXTURES. 

Cr, 

1875. 
Apr. 

5  To  Cash,  - 

-    -    - 

1 

180 

See  Classification  of 
Accounts,  _pp.  72,  73, 
and  Rule  IL,  p.  41. 

GERMAN  INSURANCE  CO. 

1875, 
Apr. 


10 


To  Mdse.  - 


103 


103 


1875. 
Apr. 


By  Cash,  .    - 
"  Interest,  - 


A.  H.  HINMAN  (Book-keeper). 


1875. 

Apr. 
« 

May 

tc 

June 


To  Cash, 

"      do. 

"      do. 

"      do. 

"      do. 
Balance, 


1875. 

2 

20 

June 

30 

3 

70 

4 

10 

6 

90 

8 

90 

10 

SO 
300 

= 

July 

1 

By  3  mos.  Salary, 

300. 


8 

300 

300 
20 

W.  A.  DRAKE  (Salesman). 


1875. 

1875. 

Apr. 

10 

To  Cash,  - 

.    .    . 

2 

25 

June 

30 

<i 

20 

"      do.    - 

.    .    . 

3 

35 

(C 

30 

"      do.    - 

.             -            c 

4 

10 

May 

10 

"      do.    - 

-     .     . 

5 

45 

(( 

25 

"       do.     - 

-     -    - 

" 

30 

June 

21 

"      do.    - 

-     .     . 

7 

10 

t( 

25 

"      do.    - 

-     _     . 

8 

90 

30 

"  Balance, 

245.       f 

10 

S5 
270 

July 

1 

By  3  mos.  Salary, 

270. 
245. 


By  Bal.  bro't  down, 


We  make  Hinman  and  Drake's  accounts  show  that  the  credits  are  for  services. 

128 


Dr. 


BILLS  PAYABLE. 


8 

Cr. 


1875. 
May 
June 


To  Cash,  - 
"  do.  - 
"  Bal. 


/. 


1875. 

6 

1479 

52 

Apr. 

10 

" 

149 

42 

" 

15 

10 

19S9 

76 

May 
June 

10 
30 

3618 

70 

July 

1 

By  Sunds.  -  -  - 
"  Hood,  B.  &  Co.  - 
"  D.N.Lord&Co. 
"  Joy,  Lang.  &  Co, 
"   Sunds.     -    -    - 


3618.70 
16i>8.94 


By  Bal.  bro't  down, 


2 

149 

« 

1479 

5 

582 

8 

257 

" 

1150 

3618 

1989 

Answer  questions  under  Bills  Payable  acc't,  p. 


INTEREST  ACCOUNT. 


1875. 
Apr. 

May 
June 


To  Bills  Payable,  - 
"  Ger.  Ins.  Co.  - 
"  Cash,  -  -  -  - 
"  C.  C.  Cochran,  - 
"  Bills  Payable,  - 


1 

1875. 

2 

2 

32 

June 

30 

3 

2 

00 

4 

30 

7 

1 

64 

8 

11 
47 

38, 

40; 

By  Profit  &  Loss,  f . 


Refer  to  note  at  foot  of  p.  65 ;  Classification,  pp.  72,  73 ;  and  Rule  III.,  p.  41. 
RICHARD      Cincinnati,  o.     NELSON. 


1875. 
Apr. 


15 


To  Mdse.  - 


148  50 


1875, 
Apr. 


26 


By  BUls  Rec. 


W.  H.     Baltimore,  Md.     SADLER. 


1875. 
Apr. 


15 


To  Mdse. 


99 


1875. 
May 


By  Cash, 
"      do. 


129 


5 
6 

75 
24 

99 

9 

Dr. 


PASSAVANT    City.    &  CO. 


Cr. 


1875. 
Apr. 
May 

June 


To  Mdse.  - 
"  do.  - 
"  do.  - 
"  do.  - 
"     do.    - 


600.65 
126.50 


1875. 

s 

14 

25 

Apr. 

30 

5 

200 

May 

31 

6 

860 

« 

13 

20 

7 

13 

20 

By  Mdse. 
"     do. 


2  bills. 

3  " 

126.50 


50 


T.  P.    citu.    REMINGTON,  Jr. 


1875. 
Apr. 
May 
June 


To  Mdse.  - 
"  do.  - 
"     do.    - 


1875. 

3 

16 

Apr. 

30 

5 

121 

13 

May 

31 

6 

13 

20 

June 

30 

By  Mdse. 

do. 

do. 


1  bill. 
6  " 
1   " 


3 

10 

5 

91 

8 

80 

P.  McGEE  (Drayman). 


1875. 
Apr. 
June 


To  Cash, 
"     do. 


4 

7 

5 
5 

1875. 
June 

30 

Drayage  to  date,  - 

lo! 
11. 

8 

21 

JERRY  MURPHY  (Warehouseman). 


1875. 
Apr.  30 


May 
June 


To  Cash, 
"     do, 
"     do. 


50 
50 
50 

150 


1875. 
June 


30 


By  Wages  to  date, 


150 


150 


130 


10 


Dr. 


AMOSKEAO     Manchester,  N.  IT.     MFG.  CO. 


Cr 


1875. 
May 


10 


To  Cash, 


1456 


50 


1875, 
May 


By  Mdse. 


1456 


A.  &  W.  SPRAGUE     Providence,  B.  I.     MFG.  CO. 


1875. 
May 


31 


By  Mdse. 


T.  &  G.    Johnstown,  I'a.     GAI.L.AGHER. 


1875. 

June  25  To  Mdse. 


7     637 10 


BALAISTCE  ACCOUNT. 


1875. 
June 


To  Cash,  -    -    -  f. 

"  Mdse.        -    -    - 

"  D.N.Lord&Co. 

"  E.  N.  Hartshorn, 

"  Felt.  &  Bigelow, 

"  I.  N.  Fomer,      - 

"  Store  Fixtures,  - 

"  Rich'd  Nelson,  - 

"  Passavant  &  Co. 

"  T.&G.Gallag'r, 


1 

1875. 

2 

2060 

43 

June 

30 

3 

1173 

801 

4 

53 

19 

6 

627 

155 

11 

32; 

48; 

7 

180 

8 

33 

50| 

" 

9 

474 

15 

10 

627 
5396 

10 

12 

ByCamp.K.&Co.f. 
A.  H,  Hinman,  - 
W.  A.  Drake,  - 
Bills  Payable,  - 
T.  P.  Remington, 
P.  McGee,  -  - 
Sprague  Mfg.  Co. 
Stock,  _2M1.91_     _ 


5 

293 

7 

20 

t< 

25 

8 

1989 

9 

31 

9 

11 

10 

177 

1 

2848 

5396 

Answer  questions  under  Balance  acc't,  p.  49. 
131 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

REMARKS. 

1.  Let  the  learner  examine  his  Profit  and  Loss,  Stock,  and  BalancQ 
acc'ts  to  learn  the  object  and  result  of  closing  the  Ledger. 

2.  The  Profit  and  Loss  acc't  shows  the  gains  and  losses  as  gathered  from 
all  sources,  and  the  difference  between  the  two  sides  of  the  acc't  indicates 
that  the  business  has  resulted  in  a  loss  of  $886.99.  This  loss  is  not  only- 
recorded  in  the  Profit  and  Loss  acc't,  but  is  taken  to  Stock  acc't,  where  it 
stands  charged  to  the  owner  of  the  business  as  if  he  had  reduced  his  capital 
by  drawing  out  in  cash  the  same  am't.  To  prove  the  correctness  of  this 
exhibit  of  loss  and  its  effect  in  reducing  the  capital  of  the  business,  the 
Balance  acc't  is  used  to  corroborate  this  exhibit  of  Profit  and  Loss  acc't. 

Tlius  tlie  Balance  acc't  shows  on  the  Dr.  side  that  all  the  effects 

and  debts  due  tlie  concern  amount  to $5396.13 

And  that  the  concern  owes 2547.91 

Leaving  as  capital  due  the  owner  of  the  concern  the  sum  of    -    -    -      2848 .  21 

The  original  capital  on  April  1  was 4000 . 

By  the  above  exhibit  the  capital  has  been  reduced  this  amount    -    -  $1151.79 

For  the  particulars  of  this  reduction  we  turn  to  the  Stock  account.    There  we 

find  that  the  owner  has  drawn  out  the  sum  of $264.80 

And  that  there  was  a  loss  of 886 .  99 

So  Stock  acc't,  when  Profit  &  Loss  is  closed  into  it,  shows  a  decrease  of    $1151 .  79 
in  the  capital.    Both  accounts  show  that  the  net  capital  is  only  $2848.21. 

3.  The  object  in  closing  the  Ledger  may  then  be  stated  as  follows : 

1st.  To  ascertain  the  gain  or  loss  for  a  certain  period. 

Sd.    By  the  work  of  closing  to  record  the  gain  or  loss  for  that  period. 

3d.   By  the  Balance  acc't  to  show  that  the  gain  or  loss  is  a  reality. 

4.  Direct  the  learner  to  write  the  answers  to  questions  on  p.  50.  Ex^ 
plain  that  the  questions  must  be  answered  from  this  set,  and  not  Set  II. 

5.  The  contents  of  an  old  Ledger  are  taken  to  a  new  one  by  a  Journal 
entry,  or  a  transfer  on  the  face  of  the  Ledger,  by  closing  each  acc't  with  the 
entry,  "Bal.  to  Ledger  B,  fol.  — ,"  and  transferring  it  to  tlie  acc't  on  new 
Lcdo-cr.  132 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 


EXERCISES  IN  BUSINESS  FORMS. 

After  writing  tlie  answers  to  the  questions  on  p.  50,  make  out  the  fol- 
lowing forms.  Write  bills  on  bill  paper,  and  all  other  forms  on  cap  or 
letter  paper.     We  give  forms  on  pp.  134,  135,  136,  137,  138,  and  139. 


Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 

Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 
Write 


note  given  by  John  Gundry  for  $1100.  See  entry  D.B. 

indorsed  note  given  by  J.  S.  Conover  for  $3000.  See  entry-D.B. 


See  entry  D.B. 
See  entry  C.B. 
See  entry  D.B. 

See  entry  D.B. 
See  entry  D.B. 
See  entry  D.B. 
See  entry  D.B. 


bill  for  goods  sold  0.  C.  Cochran, 
receipt  for  money  paid  Jno.  F.  Claley. 
note  given  to  Coffin  &  Altcmus. 
letter  to  send  with  above  note, 
acceptance  given  to  Hood,  Bonbright  &  Co. 
indorsed  note  given  by  I.  N.  Forncr. 
receipted  bill  for  Dexter,  Abbott  &  Co. 
draft  on  D.  T.  Ames,  received  of  R.  Nelson, 
receipt  and  duplicate  for  W.  A.  Miller  for  payment  on  account 

See  entry  D.B. 
letter  of  acknowledgment  to  Felton  &  Bigelow.  See  entry  D.B. 
note  given  D.  N.  Lord  &  Co.  See  entiy  D.B. 

sight  draft  on  I.  N.  Fomer.  See  entry  D.B. 

letter  of  acknowledgment  to  I.  N.  Fomer.  See  entry  D.B. 

letter  of  acknowledgment  to  W.  H.  Sadler.  See  entry  D.B. 

statement  of  Thos.  May  Peirce's  account.  See  Ledger,  p. 

statement  of  E.  N.  Hartshorn's  account.  See  Ledger,  p. 

draft  on  T.  S.  Preston.  See  entry  D.B. 

account  for  L  N.  Fomer.  See  Ledger,  p. 

receipt  for  Thos.  May  Peirce.  See  entry  D.B. 

out  acc't  of  Wm.  Simpson,  Son  &  Co.  See  Ledger,  p. 


April  1,  p.  105. 

April  1,  p.  105. 

April  5,  p.  105. 

April  5,  p.  97. 

April  10,  p.  106. 


Foi-m 
Form 
Form 
Form 
Form 
Form 

April  15,  p.  106.  Form 

April  20,  p.  107.  Form 

April  26,  p.  107.  Form 

April  26,  p.  107.  Form 

of  Felton  &  Bigelow. 

May  1,  p.  108.      Form 

May  5,  p.  108. 

May  10,  p.  108. 

May  20,  p.  109. 

May  31,  p.  109. 

May  20,  p.  1C9. 

126. 

127. 

p.  110. 

127.     ' 

June  5,  p.  110. 

125. 


Form 
Form 
Form 
Form 
Form 
Form 
Form 
Form 
Form 
Form 
Form 


The  pupil  is  required  to  write  forms  such  as  he  is  supposed  to  give 
and  receive  in  business  transactions.  The  Day  Book  rarely  gives  the 
full  particulars  for  the  forms,  but  the  auxiliary  books  do,  and  the  student 
must  refer  to  them  when  particulars  are  not  given  on  the  Day  Book. 

If  necessary,  teachers  may  direct  the  pupils  to  make  out  double  tho 
number  of  papers  required  of  them  by  us. 

133 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 

Form  1. — Promusory  Note. 

Cincinnati,  0.,  Jan.  2,  1875. 

Three  montlis  after  date,  I  promise  to  pay  G.  A.  Gaskell,  or  ord 

Eleven  Hundred  Dollars,  for  value  received. 

John  Gundry. 

Note.  When  this  note  becomes  due,  or  is  passed  away  before  maturity,  G.  A.  Gaskell  n: 
indorse  it  by  writing  his  name  on  the  back  in  black  ink,  it  being  payable  to  his  order. 
Pennsylvania,  the  clause,  "without  defalcation,"  should  be  inserted  before  or  after  "ve 
received."    A  note  indorsed  with  the  name  of  the  person  or  persons  to  whom  it  is  made  j. 
able  becomes  payable  to  any  holder  without  further  indorsement. 

Form  2, — Indorsed  Promissory  Note. 

COLDWATER,  Micli.,  April  1, 1875. 
$2000,"^. 

Three  montlis  after  date,  I  promise  to  pay  to  the  order  of  D.  L.  M 
selman,  Two  Thousand  Dollars,  for  value  received. 

J.  S.  CONOVER. 

Note.  This  note  having  an  indorser  (D.  L.  Musselman)  when  it  comes  into  my  possess: 
Is  designated  as  an  "  indorsed  promissory  note." 

Form  3. — Demand  Note. 

Cleveland,  O.,  April  1,  1875. 

On  demand,  we  promise  to  pay  John  Jamison,  or  order,  Five  Hundred 
Dollars,  for  value  received. 

E.  &  W.  Patterson. 

Note.  When  the  note  is  signed  as  above,  the  parties  must  be  partners.    The  next  form 
shows  how  the  note  is  to  be  worded  when  two  or  more  persons,  who  are  not  partners,  sign  it. 

Form  Ji^ — Joint  and  Several  Promissory  Note. 

New  York,  April  10, 1875. 
$500. 

Thirty  days  after  date,  for  value  received,  we,  or  either  of  us,  promise 
to  pay  to  the  order  of  U.  S.  Grant,  Five  Hundred  Dollars. 

John  Brown, 
John  Jones. 
134 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

Form  6, — Sight  Draft, 

New  York,  May  20, 1875. 
$58,Vff. 

At  sight,  pay  to  tlie  order  of  Geo.  R.  Duncan,  casliier,  Fifty-eight  '^/loo 
Dollars,  for  value  received,  and  charge. 

Yours  respectfully, 

G.  A,  Gaskell. 

To  I.  N.  FORNER, 

Pittsburgh,  Pa. 

Note.  A  Bight  draft  is  usually  made  payable  to  the  order  of  the  cashier  of  the  bank,  where  it 
is  deposited  to  your  credit  the  same  as  money. 

Form  6. — Time  Draft. 

Cincinnati,  O.,  AprU  10, 1875. 

Sixty  days  after  date^  pay  to  the  order  of  Richard  Nelson,  One  Hundred 
and  Fifteen  Dollars,  for  value  received,  and  charge, 

Yours  respectfully, 

John  R.  Scott. 
To  D.  T.  Ames, 

New  York,  N.Y. 

Form  7. — Acceptance, 

4  Philadelphia,  March  27, 1875. 

;  i  $1479^^. 

^*  %  Sixty  days  after  sigTit,  pay  to  the  order  of  Ourselves,  Fourteen 

^^  ,  Hundred   and   Seventy-nine   ^^/loo   Dollars,  for   value    received,   and 

^    .   charge, 

-2  ^  Yours,  &c., 

i^;|  Hood,  Bonbright  &  Co. 

&        To  G.  A.  Gaskell, 
^  New  York,  N.Y. 

Note.  We  give  the  -wording  of  the  acceptance  at  the  end  of  the  note,  but  the  pupil  must 
write  it  across  the  face  of  it,  and  in  red  ink. 

135 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPING. 

Form  8. — Bill  of  Items. 

New  Yokk,  April  5,  1875. 
Mr.  Charles  C.  Cochran, 

Bo't  of  G.  A.  Gaskell. 


10  pes.  Stark  A  A  Brown  Crash, 

1    "     Bates'  Mills  Gingham,    - 

5   "    Union  Mills  Checks,  «  70 

13| «  Hope  Mill  4-ply  Twine, 

Case  and  cartage, 

60  days. 

Form  9. — Receipted  Bill. 
Mr.  G.  A.  Gaskell, 


-  200  yds.  @ 

-  24    "     @. 
.    120    "    @ 


17 

34 

13 

3 

14 

16 

35 

4 
1 

60 

Boston,  April  24, 1875. 
Bo't  of  Dexter,  Abbott  &  Co. 


5  pes.  Dunnell's  Light  Faney  Prints,  -    -     120  yds.  (c 

5   "  do.        Robes, 120    "    ^ 

5   "  do.       Pinks, 120    "    (c 

Received  payment. 

Dexter,  Abbott  &  Co. 

Per  Nath.  Dott, 


9 

10 

91 

11 

91 

11 
33 

1 

Mr.  Thos.  May  Peirce, 


Form  10. — Statement. 

New  York,  June  1, 1875. 

To  G.  A.  Gaskell,  Dr. 


1875. 

Apr. 

5 

" 

20 

May 

5 

« 

31 

For  Mdse.  per  bill,  60  days, 
do.  "        30     " 

do.  "        60    " 

"       do.  "       60     " 


Due  June  10. 


1253 
247 
116 
210 


1828 


Note.  In  a  Btatement  the  pupil  may  give  the  date  that  each  hill  matures.  Thus,  "Due 
June  4,"  instead  of  the  running  time,  as  we  do  above.  No  statement  should  he  sent  to  a  cus- 
tomer unless  the  term  of  credit,  if  any,  is  clearly  stated. 

136 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 

Form  11. — Account. 

New  Yoek,  June  1,  1875. 
Messrs.  Felton  &  Bigelow, 

In  account  with  G^A.  Gaskell,  Dr. 


1875. 

Apr. 

5 

" 

26 

May 

1 

31 

1875. 

May 

1 

5 

(( 

By  Cash  per  W.  A.  Miller, 
"  Mdse.  returned,  -  -  - 
"   Cash  on  account,     -    - 


Balance  due. 


207 

124 

155 

48 

536 

207 

91 

23 

150 

— 

380 
155 

Note.  When  making  out  an  account,  particulars  of  each  credit  should  he  given. 

Form  12. — Receipt. 
)^.     Received  New  York,  April  5, 1875,  of  G.  A.  Gaskell,  Twenty  Dollars, 


in  full  for  bill  of  Boxes. 


John  R.  Scott. 


Form  13. — Receipt  on  Account. 

New  Yokk,  April  30,  1875. 
$5i"^*'^.    Received  of  G.  A.  Gaskell,  Five  Dollars,  on  account  of  Cartage. 

his 

P.  X  McGeb. 

Witness  :  Chas.  P.  Duff.  '"''* 

Note.  When  a  person  cannot  sign  his  name,  he  must  make  his  mark  in  presence  of  a  wit- 
Then  the  witness  attests  by  signing  his  name  on  the  left  of  the  paper,  as  shown  above. 

Form  IJ/.. — Receipt  for  a  Particular  Bill  or  Item. 

New  York,  May  10, 1875. 


for  Five  Hundred  and  Eighty-two  Dollars,  which,  when  paid,  will  be  in  full 
for  biU  of  March  31, 1875.  '  David  N.  Lord  &  Co. 

Per  S.  W.  Patton. 

Note.  Never  give  a  receipt  "  in  fuU  to  date  "  when  the  payment  covers  any  particular  bill  or 
item. 


SET  III. -DOUBLE  ENTKY  BOOK-KEEPINa. 

Form  15. — Receii:>t  for  a  Payment  on  Account  of  Another  Party. 

New  Yoek,  May  1, 1875. 
$207  i%V.    Received  of  W.  A.  Miller,  Two  Hundred  and  Seven  »Vioo  Dollars, 
in  payment  of  Felton  &  Bigelow's  bill  of  April  5,  1875. 

G.  A.  Gaskell. 

Per  IIiNMAN. 

Note.  If  a  duplicate  receipt  for  the  ahove  is  required,  make  an  exact  copy,  and  write  the 
word  "Duplicate"  across  its  face,  about  two  inches  from  the  top,  or  left  end. 


Form  16. — Limited  Order  for  Mdse. 

Pittsburgh,  Pa.,  April  10,  1875. 
$90rV(7-    Pay  William  Allen,  or  order.  Ninety  Dollars  in  Mdse.  and  charge, 

Eisner  &  Phillips. 
To  Joseph  Horne  &  Co., 

Pittsburgh,  Pa. 


Form  17. — Open  Order  for  Mdse. 

Pittsburgh,  April  10,  1875. 
Please  furnish  William  Allen  with  such  Mdse.  as  he  may  want,  with  bill  of 
same,  and  charge. 

Yours,  &c., 

S.  S.  Cox. 
To  P.  Duff  &  Sons, 

Pittsburgh,  Pa. 

Form  18. —  Order  for  a  Specified  Article, 

Memphis,  Tenn.,  April  10, 1875. 
Please  let  the  bearer  have  one  Suit  of  Clothes,  with  bill,  and  charge, 

Yourc,  &c., 

John  Taylor  «&  Co. 
To  John  Webb, 

Memphis. 

138 


SET  III.— DOUBLE  ENTRY  BOOK-KEEPINa. 

Form  19. — Check. 

$102j^oV  Pittsburgh,  June  23, 1875. 

CENTRAL  BANK, 

Pay  G.  A.  Gaskell or  order, 

One  Hundred  and  Two  , -f^^  Dollars. 

S.  D.  EVERHART. 


Form  20. — Letter  Inclosing  Note. 

New  York,  April  10, 1875. 
Messrs.  Coffin  &  Altemus, 

Baltimore,  Md. 

Gentlemen^ 

Inclosed  find  my  note  dated  Marcli  30,  at  60  days,  for  One 
Hundred  and  Forty-nine  *^/ioo  Dollars,  in  settlement  of  bill  Marcli  80,  and 
interest.    Please  acknowledge  receipt  to 

Yours  respectfully, 

G.  A.  Gaskell. 

Form  21. — Letter  of  Acknowledgment. 

New  York,  May  5,  1875. 
Messrs.  Felto:^^  &  Bigelow, 

Cleveland,  O. 

Gentlemen, 

Your  favor  of  the  3d  is  to  hand,  with  draft  for  One  Hundred 
and  Fifty  Dollars,  on  account,  for  which  you  have  ray  thanks. 

Very  respectfully, 

G.  A.  Gaskell. 

Note.  This  form,  with  a  slight  change,  will  be  suitable  for  the  acknowledgment  of  any  re- 
mittance. Thus,  if  the  remittance  will  cover  any  particular  bill,  say  April  1,  omit  the  clause 
"  on  account,"  and  in  lieu  of  it  insert  ''  in  full  for  bill  of  April  1."  The  form,  with  but  slight 
alteration,  can  be  used  to  acknowledge  the  receipt  of  a  note  or  time  draft. 

Form  20  may  be  used  in  a  multitude  of  cases.  For  instance,  in  sending  bank  checks  or 
drafts,  time  or  eight  drafts  on  firms  or  individuals,  currency,  Post-office  money  orders,  and 
notes.    Change  the  form  so  that  it  will  show  what  you  sent,  and  what  it  is  sent  for. 

139 


SET  IT.— DOUBLE  ENTRY  BOOK-KEEPING. 


MANUFACTURERS'   BOOKS. 

EXHIBITING  THE  USE  OF  THE  AUXILIARIES,  AND  TRANSFERRING 

THEIR  CONTENTS  DIRECTLY  TO  THE  JOURNAL,  WITHOUT 

THE  INTERVENTION  OF  THE  DAY  BOOK— A  PROCESS 

BY  WHICH  TIME  AND  LABOR  ARE  SAVED. 

INTRODUCING  VARIOUS  ACCOUNTS  SHOWING  COST  OF  MANUFAC- 
TURING, BUILDINGS,  MATERIALS,  IMPLEMENTS,  &c. 

ALSO,   A  NEW  FORM    FOR    KEEPING   BILL   ACCOUNTS,  AND  THE 

MOST    SIMPLE,  YET   COMPLETE   AND  COMPREHENSIVE 

FORM  OF  BALANCE  SHEET  EVER  PRESENTED. 

ALSO,  THE    SIX-COLUMN  JOURNAL  BY  WHICH  WRITING   IN  THE 

CASH  AND  MDSE.  ACCOUNTS  IS  REDUCED  TO  ABOUT 

ONE  LINE  FOR  ONE  HUNDRED. 

REMARKS. 

Having  in  the  preceding  set  given  an  illustration  of  tlie  auxiliaries  as 
used  in  a  merchandising  business,  we  illustrate  their  use  in  this  set  in  a 
manufacturing  business,  dispensing  with  the  Day  Book,  and  transferring 
their  contents  directly  to  the  six-column  Journal. 

Our  object  in  introducing  a  set  of  manufacturers'  books  is  to  satisfy 
the  learner  that,  by  the  use  of  rules  and  principles  already  acquired,  and 
a  little  judgment  in  meeting  the  requirements  of  the  business,  he  can 
open  and  keep  books  for  any  business  coming  within  the  scope  of  his 
acquirements  as  a  book-keeper. 

Many  authors  object  to  the  introduction  of  manufacturers'  books  in  a 
work  of  this  kind,  alleojing  that  such  are  too  difficult  for  the  learner. 
But  we  venture  the  prediction  that  the  learner,  after  going  through  with 
the  following  set,  will  side  with  us  in  saying  that  he  has  with  little  diffi- 
culty acquired  a  knowledge  of  new  features  in  the  science  of  book-keep- 
ing, and  has  satisfied  himself  of  the  comprehensive  character  of  its  rules 
and  principles,  and  of  his  ability  to  apply  them  in  conducting  books  in 
any  new  or  strange  business. 

140 


SET  IV.— DOUBLE  ENTRY  BOOK-KEEPINa. 


SALES   BOOK. 

1.  Manufacturers  generally  have  a  printed  price-list  by  which  all 
goods  are  sold  at  a  discount.  Large  and  responsible  buyers,  or  jobbers 
as  they  are  often  termed,  receive  the  largest,  while  retailers  or  small 
buyers  receive  the  smallest  discount.  The  price-list  is  often  so  arranged 
as  to  provide  for  different  discounts  on  the  various  lines  of  goods  manu- 
factured. One  article  may  be  sold  at  75^  discount,  and  another  at  a 
discount  of  10^  off  the  price-list.  Li  a  business  of  this  kind  the  Sales 
Book  should  be  ruled  with  three  money  columns.  See  entry  of  sale  to 
D.  R.  Lillibridge,  Sept.  1. 

2.  The  pupil  should  calculate  and  extend  some  of  the  sales  on  the 
following  pages,  to  acquire  a  knowledge  of  this  part  of  the  work. 

3.  Page  your  manuscript  book  in  the  upper  outside  corners,  as  in  the 
text-book.  Each  page,  when  full,  must  be  footed  and  forwarded  to  the 
end  of  the  month,  and  then  compared  with  the  footing  of  the  credit 
Mdse.  column  of  the  Journal. 

4.  See  Sales  Book  for  Set  III.,  p.  87.  The  directions  for  transferring 
the  contents  of  this  book  as  given  there  apply  here,  except  as  to  the 
transfer  mark,  which  must  be  "Jour.  1,"  instead  of  "D.  B.  1." 

5.  The  pupil  must  be  particular  to  examine  all  the  notes  that  he  is  re- 
ferred to  in  any  part  of  the  work.  He  may  think  that  the  note  is  familiar 
to  him,  and  be  mistaken. 

6.  Before  a  book-keeper  of  experience  can  journalize  correctly,  he 
must  first  ascertain  what  accounts  are  kept  in  the  books.  Without  this 
information  he  may  debit  Profit  and  Loss  for  an  item  that  should  go  into 
Expense — an  acc't  he  did  not  know  was  kept.  If  he  did  not  make  an 
examination  and  find  that  a  Metal  acc't  was  kept,  he  might  debit  all  pur- 
chases of  that  article  to  Mdse.  The  learner  must  find  out  what  accounts 
are  kept  in  the  same  way  that  the  experienced  book-keeper  does,  viz.,  by 
an  examination  of  the  Ledger.  This  must  be  done  before  attempting  to 
transfer  any  of  your  auxiliaries  to  the  Journal. 

141 


NEW  YORK,  July  1,  1875, 


Sold  for  Cash,  133  #  Washers, 
—  lO 


@w 


Sold  B.  M,  Worthington,  Madison,  Wis. 

50  "Excelsior"  Cook  Stoves,  S9,  -    -    -  -  @  $25. 

50  Galvanized  Stove  Reservoirs,  fl  9,  -    -  -  @      9 . 

50         do.        Ham  Boilers,  #  9,    -     -    -  -  @      5. 

60  day  acceptance,  Less  25%,     -    -    - 

or  2  ^  oif  for  cash. 

Less  Frt.  to  Chicago,  13,500  S  @  35/ 


2Sold  D 

•  ^v. 

L.  Musselman,  Quin 

50  plain  By  Sauce  Pans, 

5    *' 

Straight  do. 

50     " 

Round  Boilers, 

10    " 

Shallow  Stew  Pans 

10    '' 

Yankee  Bowls, 

2    " 

Stove  Ham  Boilers, 

10    " 

Tea  Kettles, 

5    " 

Skillets, 

5     " 

Stove  Pots, 

Cash. 


84  97              1.12 

Ea.    2  3                4q. 

84  97           1.12 

£Ja.    2  3                4:0. 

1,12    1.28    1.48    1.61 

Ea.    4  5        6        la. 

75  85           96 

Ea.  t2  3            4 

1.47  1.60 

Ea.   i4  5 

4.00  4.50       5.00 

Ea.   $11  8           9 

1.60  1.70    1.90    2.00 

Ea.    $6  7         8         9 

1.00  1.20        1.40 

Ea.  #9  10          12 

1.70  2.00 

Ea.   #8  9 


Less  75^,    -    -    - 
6  Casks  $9  and  Tierce  75/ 


Sold  for  Cash,  1  "Excelsior"  Cook  Stove,  #  9,  - 

^Forward,     - 


^  See  t  4,  p.  141. 

"  In  making  extensions  of  this  bill  add  together  all  the  prices 
on  eacli  line,  and  multiply  each  sum  so  obtained  by  the  quantity 
or  number.  Thus,  on  ttie  first  line  you  have  three  prices,  viz., 
84<|;,  97<P,  $1.12,  making,  when  added,  a  total  of  $2.93,  which,  when 
multiplied  by  the  number  of  pieces  (50),  gives  the  extension, 
$140.50.  »  See  ^  3,  p.  141. 

142 


1250 
450 
250 

1950 

487 

1462 

47 


146 
14 

274 
25 
30 

27 
72 
18 
18 

~Q2' 

470 


156  SI 
9  75 


July  31,  1875, 


Bro't  over. 


Sold  Robert  C.  Spencer,  Milwaukee,  Wis. 


50  Square  Sinks, 
20     do.        do. 
10     do.        do. 
200  Sink  Legs,  -    - 
10  H'f  Circle  Sinks, 
10  Corner         do. 
10  Slop  do. 

10  Hydrant       do. 

60  days. 


1.90 
Ea.  14/20 

4.00 
Ea.  20/30 

6.25 
Ea.  22/41 


2.50      3.50      3.75 

15/24.  20/28  18/30 

4.75         5.75 

18/36        20/38 

7.25      7.50      8.50 

20/48    23/48    24/50 

-     -      -     @60/' 


2.50 
Ea.  SO 

2.00 
Ea.  t\ 

3.50 
Ea.  16/16 

1.25 
Ea.  12/13 


3.15 
1 

2.50 
2 

6.00 

15/23 


3.50 
2 

3.15 

3 

6.00 

18/24 
1.50 

14/14 


Less  40%, 


Sold  H.  W.  Flickinger,  Pliiladelphia,  Pa. 

20  "  Charter  Oak  "  Cook  Stoves,  S  9,      -     -  @  $22.50 

10  Galvanized  Reservoirs  for  Cook  Stoves,  @      6 . 

10         "  Ham  Boilers, @      5. 


90  day  note. 


Less  20%, 


Sold  B.  M.  Wortliington,  Madison,  Wis. 

20  Office  Stoves,  1 4, @ 

20  "Anti-Clinker"  Stoves,  If  3, @ 

5  Patent  Portable  Boilers,  S  2,     -     .    -    -  @ 


15. 
80. 


60  day  acceptance, 
or  2%  off  for  cash. 


Less  25%, 
1  Sales  for  July, 


'  Compare  this  footing  with  that  of  the  credit  Mdse.  column, 
Jour.  p.  157.  If  the  amounts  agree,  you  can  have  no  better  evi- 
dence of  the  correctness  of  the  transfers. 

This  footing  is  not  to  be  forwarded  to  the  head  of  next  page, 
or  it  would  have  the  word  "Forward"  opposite. 

143 


1620 

582 

50 

290 

295 

120 

91 

50 

76 

50 

155 

27 

50 

1638 
655 

20 

982 

450 
60 
50 

560 
112 

448 

320 
•300 
150 

770 
192 

50 

577 
3628 

Aug.  2,  1875. 

Sold  B.  F.  Moore,  Atlanta,  Ga. 

40  "  Charter  Oak  "  Stoves,  S  10,    -    -    -    -    @  $25. 

30  Galvanized  Reservoirs, @      6.50 

60  days.  Less  20%,     -    -    - 

^0  FirP  Grnfpq  ^-^     110      l^^      1.40 

ou  J^  ire  urates,  ^^    j  ^       21       2g       29 

fr      

Sold  D.  Clinton  Hicks,  City. 

1  "  Excelsior  "  Cook  Stove,  C  9,    - 

1  Galvanized  Ham  Boiler, 

===z    lO    ===:= 

Sold  D,  L.  Musselman,  Quincy,  111 

150$  Assorted  Castings,  - @  lOj^ 

4  "  Revolution"  Base  Burner  Stoves,  -     -   @  $50* 
50  "  Excelsior "  Cook  Stoves,  #  9,     -     -     -  @    25- 

5  doz.  Galv.  Coal  Hods, @    16' 

GO  days,  or  Less  25  % ,    -    -    - 

3/o  offfor  casli. 

// . 

Excelsior  Mfg.  Co.  St.  Louis,  Mo. 

20  Galv.  Stove  Reservoirs,         ^a.^jf?      ^'^8      ^'^ 

Cash.  •  Less  10%,    -    -    - 

/r    

Sold  Robert  C.  Spencer,  Milwaukee,  Wis. 

10  H'f  Circle  Sinks,  ^^  ^f^  ^^ 

10  Corner        do.      « 4,    ------     -    @$0. 

60  days.  Less  40%,    -    -    - 

Forward,     -     -     - 
144 


Jour. 


Jour. 


Jour. 


Jour. 


Jour. 


1000 
130 

1130 
226 


904 
232 


15 

200 
1250 

80 


1545 
386 


348 
34  80 


50 


25 


135 
54 


1136 


50 


30 


1158 


75 


313 


20 


81 


2719 


45 


Aug.  20,  1875. 

Bro't  over,    -    -    - 

If     : 

Sold  Jackson  Cagle,  (Jity. 

200  %  Assorted  Stove  Castings, @W 

Less  25;^,    -    -    - 
//    

Sold  John  R.  McGinley,  Pittsburgh,  Pa. 

40  "Big  Chief"  Cook  Stoves,  #9,      -     -    -    @  $25. 

10  Patent  Portable  Boilers,  If  3,     -    -     -    -    @    40. 

60  days.  Less  25%,    -    -    - 

.11=====  31  — 

Sold  George  J.  Luckey,  Pittsburgh,  Pa. 

!*•  Educator"  Cook  Stove,  #9, 

1  Patent  Portable  Boiler,  SI,-- 

1  Galvanized  Stove  Reservoir,  8  9, 

Cash.  Less  10%,     -    -    - 

//    — — 

Sold  J.  J.  DeHan,  Cincinnati,  O. 

25  Plain  Bellied  S.  Pans,       ^^    ^         ^'^X         ^'^^^ 

20  "  do  1-^^  1^1 

^U  ao.  Ea.    ^  lq 

10  ti                   A^                       1.75  2.08  2.27 

^"                                 ^o-  Ea.     8  10  nq. 

10  *'                   An                          52  64  75 

■^"                               ^®-  Ea.     l\  2  ^pt. 

60  days,  or  Less  70%,     -    -    - 

3%  off  for  cash. 

2  Casks,   -    -    -    - 

Sales  for  August,     -    -    - 
do.      previous,  -     -     - 

*       do.      to  date,      -     -    - 

*  See  T  3,  p.  87. 
145 


Jour. 


Jour. 


Jour. 


Jour. 


2719 


45 


20 
5 


1000 
400 

1400 
350 


25 
20 
_9 

54 
5 


15 


1050 


40 


48 


84 
61 
61 
19 

158 

67 
3 


TO 

3903 
3628 

7532 


84 

89 
47 

36 


K 


Sept.  1,  1875. 


Sold  D.  L.  Musselman,  Quincy,  111. 

50  Plain  Belly  Sauce  Pans,    -     - 

Charged  in  bill  of  July  20,  as, 
50  Plain  By  Sauce  Pans,    -    -    ^ 


-  -    5^.  @$1.28 

-  -    4g.  @    1.12 

Less  75%,    -    -    - 


Sold  D.  R.  Lillibridge,  Manchester,  N.  H. 


20  Plain  R'd  Boilers, 


25  do. 

15  do. 

10  do. 

5  do. 

1  do. 


do. 
do. 
do. 
do. 
do. 


84 

Ea.    2 

1.12 

Ea.    4 

1.48 

Ea.    6 

2.08 
Ea,  10 


91  97 

2i  3g. 

1.28 

1.61 

85.  @|'l.75 

2.27         2.67 
12  16  g 

-     -     -   20g. 


20  "  Anti  Clinker"  Stoves,  %  3, 


60  days. 


Less  75%,  -    - 

-   @$15.  300. 

Less  25%,  75. 

2  Casks,  -    - 


10 


Sold  John  Carnell,  Troy,  N.  Y. 

10  Pat.  Portable  Boilers,  ^a^f^      ^'^      ^^"3 


60  days. 


Less  25%  J 


Sold  for  Cash, 

1  Pat.  Portable  Boiler,  %  1, 


Less  10%, 
Forward, 


64 

56 

8 

_  6 

— 

2 

• 

54 

40 

60 

46 

35 

17 

50 

35 

10 

3 

20 

216 

55 

162 

42 

54 

13 

225 

3 

— 

282 

900 

225 

675 

20 

2 

— 

18 
977 

146 


Sept.  20,  1875. 

6 

8 
8 

9 
9 

Bro't  over,     -     -  ■  - 

15 
10 

600 
125 

725 
235 

1075 
350 

1425 
570 

750 

450 

12 

1212 

242 

45 

82 

63 
40 

977 
4 

489 
855 

909 

13 

Jour. 

Sold  J.  J.  DeHan,  Cincinnati,  0. 

5  Plain  By  S.  Pans,                     ^J-'l            ^-^^^ 

Less  70%,     -    -    - 

63 

Jour. 

Sold  W.  B.  Ricliards  for  cash. 

10 "Charter Oak" C'k  Stoves,     ^/^j^     ^''l    ^^'^l 
5            "                   "            If  10,  -    -    -    @  $25. 

1  Less  25  &  10%,    -    -    - 

37 

Jour. 

Sold  Robert  C.  Spencer,  Milwaukee,  Wis. 

50  Galvanised    Sq.  Sinks,         ^,.  ^>™     i'^/*    S 

-JA            *<             Slr^T^        «<                           '''0^      12.00      16.00 
^"                          ^^°P                          Ea.  16/16     18/24     20/24 

60  days.                                           Less  40%,     -    -    - 

Jour. 

Sold  H.  W.  Flickinger,  Philadelphia,  Pa. 
10 ''Centennial "Cook Stoves,  ^^  ^^jP?    ^^-^    ^'^q 
10  "Educator"          -              ^^"  ^jOg          ^-^g 

120  #  Assorted  Castings,      -    -    - '  -    -    -    -    @  10^ 

90  day  note.                                    Less  20%,     -    -    - 

Sales  for  September,  -    -    - 
do.      previous,      -     -     - 

do.      to  date,    -     -    -     - 

60 

3295 
7532 

73 

36 

10828 

09 

^  Here  i5fo  of  $725.— $181.25  is  first  deducted,  leavino;  $543.75 
upon  which  to  compute  the  10;^.     Add  the  two  discounts  or 
amounts  too^ether,  and  you  have  the  total,  $235.63.    The  pupil 
should  calculate  this  discount  to  see  that  he  understands  it.    If 
the  cash  has  been  received  for  this  sale  it  will  be  found  on  the 
C.U.    Refer  to  it. 

147 


1  Br. 


CASH 


1875. 
July 


Aug. 


Stock, 

Mdse. 

do. 


Hec'd  for  Capital,  -  -  - 
"  per  S.  B.  1,  -  -  - 
"       "      "     1,    -    -    - 

9038.30 
8405.10 

"633.20 


Balance,  -    .    -    - 
B.  F.  Moore,     -    - 
Bills  Receivable,  t  2, 
Excelsior  Mfg.  Co. 
D.  L.  Musselman, 
Bills  Payable,  S  3, 


Bro't  dowB, 

Kec'd  on  account, 

"     for  Worthington's  Acceptance, 

"     Draft  by  mail, 

"      Draft  for  bUl  Aug.  10,    -    -    - 
"     Net  proceeds  of  our  Note  disc'd, 

6884.05 
2764.80 

4119.25 


Read  and  follow  instructions  on  p.  95. 


148 


9000 
13 
25 


30 


9038 

633 

800 

1401 

450 

1125 

3473 


6884  05 


ACCOUNT. 


€r.    1 


1875. 
July 


10 


20 


31 


Aug. 


10 


Buildings,  -  - 

Flasks,     -  -  - 

Patterns,  -  - 

Mdse.       -  -  - 

do.         -  -  - 

Expense,  -  - 

Flasks,    -  -  - 

Patterns,  -  - 

Expense,  -  - 

do.  -  - 

do.  -  - 
Foundry  Wages, 

Flasks,     -  -  - 

Patterns,  -  - 

Expense,  -  - 
Foundry  Wages, 

Patterns,  -  - 

Expense,  -  - 


Mdse.  -  -  -  . 
do.  .  .  .  . 
Expense,  -  -  • 
Foundry  Wages,  - 
Flasks,  -  -  -  - 
Expense,  -  -  ■ 
B.  F.  Sturtevant,  - 
Foundry  Wages,  - 
Patterns,  -  -  - 
Flask,  -  -  -  - 
Expense,  -  -  - 
Excelsior  Mfg.  Co. 


P'd  on  acc't  of  Fonndry  Buildings,  -  - 
"•  Walters  &  Son  for  Lumber,  -  -  - 
"  J.  R.  Hutchison  for  Metal  Patterns, 
"  R.  Lea  for  Moulding  Sand,  -  -  - 
"   Dawson  Bros,  for  Foundry  Facing, 

"   for  Postage  Stamps, 

"  Andrew  Murray  for  making,     -    - 
do.  do.         -    - 

"   Insurance  Premium, 

"   Root,  Anthony  &  Co.,  Blanks,  &c. 
"   for  printing  Price-List,     -    -    -    - 

"   Hands  to  July  17, 

do.  "17, 

"       do.  "17, 

"   for  Sundries  to  July  17,    -    -    -    - 

"   Hands  to  date, 

"      do.         do. 

"   for  Sundries  to  date,     -    -    -    - 

Balance  carried  down,  -   -  8405.io  . 


P'd  S.  D.  Everhart  for  Coal,  - 

"  G.  &  L.  Moul  for  Coke,  - 

"  State  License  to  April,  1876, 

"  Hands  to  Aug.  7,      -    -  - 

"  do.            "7,       -    -  - 

"  Sunds.         "7,       -    -  - 

"  for  bill  of  June  25,    -    -  - 

"  Hands  to  Aug.  28,     -    -  - 

"  do.            "28,     -    -  - 

"  do.            "28,     -    -  - 

"  Sunds.        "    28,     -    -  - 

"  Standard  Bolt  Co.     -    -  - 

Balance  carried  over,     -   -  2764, 


149 


2    Br. 


CASH 


1875. 
Sep. 


30 


Balance,  -    .    -    - 
Mdse.       ...     - 
J.  J.  DeHan      -    - 
Bills  Receivable,  t5, 
do.  «3, 

Mdse.       -     -     -     - 
Bills  Receivable,  81, 


Bro't  over, 

Kec'd  for  cash  sale,  S.  B.  5,     - 

"  for  our  sgt.  Draft  on  him, 

"  am't  of  Dalzeirs  Note,  - 

"  n.  p.  Spencer's  Note,     - 

"  for  gale  per  S.  B.  5,    -    - 

"  for  Musselman's  Note,  - 

6024.46 
5739.24 


Balance, |  Bro't  down, 


Note.  To  make  room  for  explanations  we  use  but  one  money  column  on 
Dr.  and  Cr.  side  of  this  book.  It  can  be  ruled  with  double  money  columns, 
and  the  total  receipts  and  payments  extended  in  the  outer  columns  for 
comparison  with  the  monthly  footings  of  the  Cash  columns  in  the  Journal. 

In  business  this  book  should  be  balanced,  in  pencil,  daily,  in  order  to 
get  timely  notice  of  any  disagreement  between  the  balance  here  and  the 
amount  of  cash  on  hand. 


4119,25 

18! 

68  71 
1851 
975  84 
489  37 
168  29 


6034 


285 


160 


ACCOUNT. 


Cr 


1875. 
Sep. 


10 


20 


30 


Bills  Payable,  %  1, 

Mdse. 

do. 

Interest,  -  -  -  . 
Foundry  Wages,  - 
Flasks,  -  -  -  . 
Patterns,  -  -  - 
Expense,  -  -  - 
Samuel  G.  B.  Cook, 
Foundry  Wages,  - 
Patterns,  -  -  - 
Flask,  .... 
Expense,  -  -  - 
D.  L.  Musselman, 

do. 
Expense,      -    -    - 
do.  -    -    . 


P'd  Wilhelm  &  Co.  Note  in  part,  - 
"  L.  S.  Thompson  for  Coa],  -  - 
"  N.  J.  Bigley  for  Coke,  -  -  .  - 
"  on  renewal  of  Bills  Payable,  jf  2, 

"•  Hands  to  Sept.  4, 

"      do.  "4, 

"      do.  '^     4, 

"   Sunds.        '*     4, 

"  his  sgt.  Draft  on  me,    -   -   -   - 

"  Hands  to  Sept.  18, 

"       do.  "     18, 

"       do.  "     18,    ~    ...   - 

"   Sunds.        "18, 

"  Prot.  Draft  returned  to  us,  -  - 
"  Protest  Fees  and  Interest,  -  . 
"  for  collection  of  Bills  Rec.  J  1,  - 
"   City  Taxes, 

Balance  carried  down,    6739.24   .   . 


Note.  Careless  persons  having  access  to  this  book  will  often  charge  s 
payment  to  the  wrong  account.  The  careful  book-keeper  will  be  prompt 
to  detect  and  correct  errors  of  this  kind,  as  he  is  expected  to  know  what 
account  should  be  debited  for  every  payment.  It  is  no  excuse  for  a  book- 
keeper to  say  to  an  employer,  "It  is  not  my  fault ;  I  did  not  make  the 
entry." 


2500 
95 

140 
13 

750 
25 
25 
20 
28 

820 

50 

30 

21 

1125 

5 


20 


90 


6024 


46 


161 


BILLS 


Date 

No. 

1875. 

July 

20 

1 

" 

10 

2 

i« 

31 

3 

June 

30 

! 

4 

July 

10 

5 

Aug. 

:- 

6 

Sept. 

7 

DRAWER'S  NAME. 


D.  L.  Musselman,   -  - 

B.  M.  Worthington,  - 

R.  C.  Spencer,    -    -  - 

W.  G.  Hawkins,      -  - 

Samuel  Dalzell,  -    -  - 

B.  F.  Moore,  -    -    -  - 

Jo^in  R.  McGinley,  -  - 


IN  WHOSE  FAYOR. 


Myself,     -    -    - 
Acceptance,  -    - 

n.  W.  Flickinger, 

Myself,     -    -    - 
Eisner  &  Phillips. 


ON  WHAT  ACC'T. 


TIME. 


Bill  of  July  20,     -  -  60  days. 

10,     -  -  60 

"     31,     -  -|60    " 

H.  W.  Flickinger,  -  6  mos. 

u         "  .  la  " 


Bal.  of  his  o/c 
Jno.  R.  McGinley, 


60  days. 
12  mos. 


Note.  Road  pp.  100, 101. 

BILLS 


Date. 


1875. 
June 


Aug. 
Sept, 
July 
Sept. 


No. 


DRAWER'S  NAME. 


Myself, 


IN  WHOSE  FAYOR. 


Wilhelm  &  Co.  -    -   -    - 

J.  R.  Hutchison  &  Co.    - 
Myself,     ------ 

Wilhelm  &  Co.  -    -    -    - 

J.  W.  Pope, 

J.  R.  Hutchison  «&  Co.    - 


ON  WHAT  ACC'T. 


Foundry  Buildings,  - 
Contract  for  Engine,  - 
My  accommodation,  - 
Part  renewal  of  J 1,  - 
Bal.  due  him,  -  -  - 
Renewal  of  J  2,    -    - 


TIME. 


60  days. 
2  mos. 
60  days. 
60    " 
4  mos. 
days. 


Note.  In  this  Set  all  notes  are  numbered  both  in  the  Bill  Books,  Journal,  and  Ledger,  as  will 
be  seen  by  referring  to  them.  Each  account  in  the  Ledo^er  is  the  counterpart  of  its  representa- 
tive here.  This  is  the  result  of  posting  by  number,  and  reserving  the  space  opposite  and  on  the 
Bame  line,  for  the  entry  to  be  posted  when  the  note  is  disposed  of  or  paid.  See  Bills  Pay.,  p.  166, 

162 


RECEIVABLE. 


WHEN  DUE. 

AMOUNT. 

WHEN  AND  HOW  DISPOSED  OF. 

AMOUNT, 

Jan. 

I'eb. 

Mar. 

Apr. 

May 

June 

July 

Aug. 

Sept. 

Oct. 

Nov. 

Dec. 

18/ 

/21 

8/11 

168  29 

1875. 
Sept. 

so 

CoUected,  - 

168 

29 

1415 

^ 

Aug. 

10 

Remitt'dfor 

lessl^    - 

1415 

25 

29/2 

978 

45 

Sept. 

20 

Discounted, 

978 

45 

30/2 

10/ 
/13 

76 

1/4 

1/4 

250 
185 
320 
525 

50 

(C 

20 

Collected,  - 

185 

PAYABLE. 


WHEN  DUE. 


Jan. 


Feb. 


Mar.  Apr. 


May 


June 


July 


Aug. 


Sept. '  Oct. 


29/1 
30/2 


3/6 


Nov. 


30/2 

31/3 

10/ 
/13 


Dec, 


AMOUNT. 


5000 
2400 
2500 
2500 
5700 
2400 


WHEN  AND  HOW  PAID. 


1875 
Sept 


P'd2500,Re- 
new'd  2500, 

Renewed  for 


AMOUNT. 


5000 
^00 


and  Bills  Rec,  p.  166,  Compare  these  with  the  Bill  Acc'ts,  pp.  125,  129,  and  notice  that  a  glance 
at  either  of  the  accounts  there  will  not  show  what  notes  are  paid  or  unpaid,  unless  all  are  paid 
and  the  account  closed.  When  either  of  these  accounts  is  balanced  in  the  Ledger  the  Bill  Books 
Bhould  be  made  to  conform. 

163 


SET  IV.— DOUBLE  ENTRY  BOOK-KEEPING. 


SIX    COLUMN    JOURNAL. 

1.  In  this  form  of  Journal  tlie  debits,  as  heretofore,  occupy  the  left,  and  the 
credits  the  right,  hut  the  names  of  the  accounts  are  between  the  debits  and 
credits  instead  of  before  them  as  in  the  ordinary  two  column  Journal.  Each 
side  is  ruled  with  three  columns.  The  outer  columns  on  each  side  are  for 
Mdse. ;  the  next  for  Cash  ;  and  the  two  inner  ones  for  Sundries,  i.  e ,  everything 
but  Cash  and  Mdse.  The  debits  and  credits  to  the  Cash  and  Mdse.  accounts  are 
extended  into  their  proper  columns  and  footed  and  forwarded  from  page  to 
page  until  the  end  of  the  month,  and  then  posted. 

2.  The  advantages  of  this  plan  are — 

1st.  A  saving  of  space  in  the  Ledger. 

2d.  In  posting,  instead  of  one  or  more  entries  daily  to  Cash  and 

Mdse.,  there  is  but  one  entry  each  month. 
3d.  The  work  of  checking  is  reduced  with  the  posting, 
4th.  Reducing  the  work  reduces  the  liability  to  error. 

The  advantages  can  only  be  perfectly  understood  by  the  learner  when  he  com- 
pares the  Cash  and  Mdse.  accounts  of  Set  IV,  p.  168,  with  the  Cash  and  Mdse. 
accounts  of  Set  III,  pp.  123, 124. 

3.  This  book  is  made  up  from  the  Auxiliaries  in  much  the  same  manner  as 
the  Day  Book  in  Set  III.  Read  T[  2,  p.  104.  The  only  difference  is  that  here 
the  learner  makes  his  Journal  entry  direct  from  the  Auxiliary  Book  and  is  re- 
quired to  change  his  transfer  marks  of  D.  B.  to  Journal.  To  become  familiar 
with  this  change,  the  learner  may  copy  two  days*  business  in  his  Journal. 
While  doing  this  he  must  follow  directions  in  \  3,  p.  104.  In  making 
entries  on  this  book,  care  must  be  taken  to  extend  the  debits  and  credits  to  Cash 
or  Mdse.  into  their  proper  columns.  Make  it  a  rule  to  examine  all  your  exten- 
sions before  attempting  to  foot  and  forward  the  columns. 

4.  Rule  a  sheet  of  paper  to  the  same  pattern  as  your  Journal ;  then  foot  each 
column,  and  place  the  footing  in  the  corresponding  column  on  the  loose  sheet, 
then  bring  the  footings  into  tlie  sundries  column,  in  the  same  order  as  in  Text 
Book,  and  prove  them. 

5.  Read  remarks  on  Auxiliaries,  pp.  75,  76,  77,  and  before  posting  compare 
a  month  of  your  printed  Journal  with  the  Ledger. 

154 


Drs, 


NEW  YORK,  July  1,  1875. 


1 
€rs. 


Mdse. 


22 


Cash. 


9013  30 


5000 
509 
320 


5000 


1415 


150 
115 
467 


126 


14018 


Cash  Dr.  To  Sunda.      ---.-_- 

To  Stock, ^  C.  B.  1, 

"  Mdse. ''     1, 

//     

Sands.  To Cash, 

Buildings  and  Fixtures,    -    -    -  C.  B.  1, 

Flasks, "     1, 

Pattern, "     1, 

Mdse.     -    -    -    -  ^^   -    -    -    -     "     1, 
Expense,    --------     "     1, 

//     

Buildings  and  Fixtures,    -    -    -    -    Dr. 
To  Bills  Payable,  J 1, 

:    10  -- 

B.  M.  Worthington,      -----     Dr. 
To  Mdse. S.  B.  1, 

//     

Sunds.  To--------     Cash, 

Flasks, C.  B.  1, 

Patterns,    --- "     1, 

Expense,    --------      "     l, 

=.==  20  

Sunds.  To Mdse. 

D.  L.  Musselman,    -    -    -    -    -  S.  B.  1, 
Cash, "     1, 

//     

Sunds.  To--------      Cash, 

Foundry  Wages,  -    -    -    -    -    -C.B.I, 

Flasks, "     1, 

Patterns, "     1, 

Expense,    --------      "     1, 

Amounts  forward,    -------- 

Cash,      

Mdse.     ------------ 

Proof, _____ 

*  Require  the  pupil  to  give  initials  and 
page  of  tho  Auxiliary  Book,  as  we  do. 

155 


9000 


5000 


14000 
7499 
1580 


23079 


Cash. 


Mdsb. 


13  30 


5856 


1415 


25 


732 


10 


151 


911 


1580 


Drs. 


July  31,  1875. 


Crs, 


Mdse. 


Cash. 


14018  97 


448 
5  i7  50 


168 


167 


2850 


19968 

9038 

22 


Am'ts  bro't  forward, 


Sunds.  Dr,  To    -    - 
Robt.  C.  Spencer, 
H.  W.  Flickinger,  - 
B.  M.  Worthington, 


Mdse. 
5.  B.  2, 


Sunds.  Dr.  To Cash, 

Foundry  Wages, C.  B.  1, 

Patterns, "      1, 

Expense, "      1, 


Bills  Rec.  SI,      -    -    ■ 
To  D.  L.  Masselman, 


Dr. 


D.  L.  Musselman, Dr. 

To  Interest  for  am't  added  in  60  day  note, 


^Buildings  and  Fixtures,  To  -  -Sunds. 
To  A.  Stetler  &  Son  for  Cupola  and 

Boiler,  per  contract,  July  1,  -  -  - 
To  B.  F.  Sturtevant  for  bill  of  Blower, 

June  25, 


Flask,    ....    - Dr. 

To  Fernald  &  Sise  for  bill  of  fittings, 
July  2, 

Amounts  forward, 

Cash,     

Mdse,    - 

Proof, 


"We  keep  no  I.  B. 


Read   t  4, 


p.  79. 

The  learner  must  not  let   any  foot- 
notes escape  his  notice. 

156 


14000 


168 


2400 
450 


17034 


8405  10 

3588147 


Cash. 


7499 


10 


Mdsb. 


158017 


2008  30 


906 


Drs. 


July  31,  1875. 


Crs, 


MrsE. 


22 


95 


9038  30 


Cash. 


19968 


40 


5700 


2570S  03 
30; 

34863 


Am'ts  bro't  forward,    -    - 


D.  L.  Musselman, Dr. 

To  Mdse.  for  error  in  traosferring  bill  of 
July  20.    See  Jour.  1  and  S.  B.  1,    - 

n     

Metal  account, Dr. 

ToJ.  W.  PopeforbillJulyl,      -    -    -    - 
do.  ''         '^     10,    -    -    -    - 

,     tf 

Mdse.  Dr.  To  Sunds. 

To  McQuiston  &  Co.  for  bill  of  Galva- 
nizing, July  20, 

To  Sam'l  G.  B.  Cook  for  bill  of  Moulders' 
riddles,  July  20,      - 

Cash,      

Mdse. 

Proof, 


-  An  error  in  a  transfer  can  be  cor- 
rected in  this  way.  If  the  learner  has 
not  copied  the  error  on  Jour.,  p.  155,  he 
must  not  make  this  entry. 

^  Post  the  Cash  and  Mdse.  debits  and 
credits.  The  amounts  are  not  to  be  car- 
ried forward  to  the  next  page. 


157 


17034  76 


4500 
1200 


67 


8405  101 

3628;47j 

34863  83 


Cash. 
840510 


Mdsb. 


3588  47 


4 
JDrs, 


Aug.  2,  1875. 


Crs. 


Mdsb. 


Cash, 


298 


50 


800 


35 


1401 


10 


1136  50 
30 


75 


1415 


^00 


1158 
313 

81 


2201 


912^ 


SundB.  To^-------     Mdse. 

B.  F.  Moore,   -------  S.  B.  3, 

D.  Clinton  Hicks,    -----     "     3, 

//     

Sunds.  To--------      Cash, 

Mdse.     ---- C.  B.  1, 

Expense,    ----------- 

//     

Cash,      ----------    Dr. 

To  B.  F.  Moore,  -    -    -    -    -    -  C.  B.  1, 

/f 

Bills  Receivable,  jf  2,  -----  Dr. 
To  B.  M.  Worthington, 

//     

Buildings  &  Fixtures,  -----  Dr. 
To  Bills  Payable,  j);2, 

===  10  == 

Mdse,  Dr.   ----------- 

To  R.  C.  Spencer  for— 

3.50       3.75 

1  Sink,         m.  20/28     18/30      $7.25 
Less40^    -    2.90 

Reported  short  in  bill  July  31,  -    -    -    - 

//     

Sunds.  To- Mdse. 

D.  L.  Musselman,  -  -  -  -  -  S.  B.  3, 
Ex.  Mfg.  Co, "     3, 

R,  C,  Spencer,     ------     "     3, 

ff     . 

'Sunds.  To-  -  -  Bills  Receivable.  $2, 
Cash,  ----_-___  c.  B.  1, 
Interest,  for  amount  deducted,  -    -    -    - 

Amounts  forward,    -------- 

Cash,      

Mdse.     ------------ 

Proof, _-_-_ 

^  Post  this  opposite  Bills  Receivable, 
32.    See  Bills  Rec.  acc't. 

158 


1415 


2400 


1415 


6034 

373 

2719 


9127 


Cash. 


373  50 


1166  50 


1552  9E 


Brs. 


Aug.  10,  1875. 


5 

Crs, 


Mdse. 


Cash. 


2201 


450  50 


6623: 


&40 
20 


9T8 


15 
1050 


450 


755 


84 


1090324 
2651] 60 
_302|85 

13857  69 


Am'ts  bro't  forward,    -   -    - 

//    . 

Sunds.  To Cash, 

Foundry  Wages, C.  B.  1, 

Expense, "      1, 

Flasks, "      1, 

rr     

Bills  Eeceivable,  #3, Dr. 

To  R.  C.  Spencer, 

.    20  

Sunds.  To Mdse. 

Jackson  Cagle, S.  B.  4, 

Jno.  R.  McGinley, "4, 

rr      

B.  F.  Sturtevant, Dr. 

To  Cash, C.  B.  1, 

ff     . 

Cash, Dr. 

To  Ex,  Mfg.  Co. C.  B.  1, 

//     

'Bills  Receivable,  To     -    -    -    -     Sunds. 

ToH.  W.  FlickingerforS4, 

do.  "   Jf5, 

"   B.  F.  Moore  "  J6, 

'  31  — 

Snnds.  To Mdse. 

Geo.  J.  Luckey, S.  B.  4, 

J.  J.  DeHan, "4, 

//     

Interest, Dr. 

To  B.  F.  Moore  for  amount  allowed  on 
advance  payment, 

Amounts  forward, 

Cash,     

Mdse,    - 

Proof, 

^  See  Bills  Receivable  acc't  in  Ledger 
before  posting. 

169 


6034 


978 


450 


185 
320  50 


85 


8235  30 
1718  50 


13857  69 


Cash. 


Mdse. 


373 


50 


895 


450 


6 
J>t\ 


Aug.  31,  1875. 


Crs. 


Mdsb. 


Cash. 


2651 


2473 


1125 


26 


34 


1050 


13061 


04 


6250  85 
_302  85 

19614  74 


Am'ts  bro't  forward, 


Sunds.  To  Bills  Payable,  J  3, 
Cash  for  net  proceeds,  -  - 
Interest  for  discount,      -    - 


Sunds.  To  D.  L.  Musselman, 

Cash,      

Interest— discount  allowed. 


C.  B.  1, 


Sunds.  To Cash, 

Foundry  Wages, C.  B.  1, 

Patterns, "     1, 

Flasks, "     1, 

Expense, "     1, 

Ex.  Mfg.  Co. "     1, 


Metal, Dr. 

To  Loomis  &  Collord  for  bill  of  Metal, 
Aug.  10, 


■Cash, 

Mdse. 

Proof, 


See  Note  2,  p.  157. 


8235 


2500 


1160 


1050 


12946  05 


2764 
3903 

19614 


Cash. 


1718  50 


1046 


Mdse. 


160 


Di's, 


Sept.  1,  1875. 


Crs. 


Mdse. 


Cash. 


235 


18 


5000 


282 


13 


5700 


589 


675 


13109 

18 

235 


20 


Bills  Payable,  J 1,  To  -  -  -  -  Sunds. 
To  Cash, C.  B.  2, 

"   Bills  Payable,  $4,  for  new  note  in  part 
renewal,  @  GO  days,  ------ 

//     

Sunds.  To--------     Mdse. 

D.  L.  MuHSclman,     -    -    -    -    -  S.  B.  5, 

D.  K.  Lillibridge,     -----     "     5, 

ff     . 

Sunds.  To--------      Cash, 

Mdse.     ---------  C.  B.  2, 

Interest,     --------      "     2, 

//     

J.  W.  Pope,     --------     Dr. 

To  Bills  Payable,  It  5,    ------- 

//     

Loomis  &  CoUord,  To  -  -  -  -  Sunds. 
To  B.  M.  Worthincrton,  for  draft  on  liim 

July  31,  @  60  days,   ------ 

To  Interest  for  am't  allowed  for  advance 

payment,     --------- 

-  lO  

Sunds.  To--------     Mdse. 

John  Carnell,  -------   S.  B.  5, 

Cash,      ---------      ''     5, 

//     

Sunds.  To Cash, 

Foundry  Wages,  -    -    -    -    -    -  C.  B.  2, 

Flasks,  ---------      "     2, 

Patterns,     --------      "     2, 

Expense,    --------      "     2, 

Sam'l  G.  B.  Cook, "     2, 

Amounts  forward,    -------- 

Cash,      

Mdse.     ------.^----- 

Proof, 

161 


2500 


5700 


3596 
977 


Cash. 


2500 


28413 


20 


848 


8 

Drs. 


Sept.  10,  1875. 


Crs, 


Mdsb. 


Cash. 


18 


37 


975 


84 


253 


13109 : 


50 


21 
1131 


34 


16253 
1736 
235 

18225 


Am'ts  bro't  forward. 


Sunds.  To  Jno.  R.  McGinley,      -    -    -    - 

Bills  Receivable,  57, 

^Profit  &  Loss  for  amount  lost  by  com- 
promise,      

-  20  - 

Sunds.  To Mdse. 

J.  J.  DeHan, S.  B.  6, 

Cash, "     6, 

//     

Sunds.  To  Bills  Receivable,  Jf  3,  -    -    -    - 
Cash, 

Interest  for  amount  of  discount,     -    -    - 

//     

Cash  Dr.  To Sunds. 

ToJ.  J.  DeHan, C.  B.  2, 

''  Bills  Receivable,  $  5,      -    -        ''2, 

// 

Sunds.  To Cash, 

Foundry  Wages, C.  B.  2, 

Patterns, ^    -         "      2, 

Flasks, "      2, 

Expense, "      2, 

D.  L.  Musselman, "      2, 

/f     

D.  L.  Musselman, Dr. 

To  Interest  for  amount  credited  Aug.  31, 
and  now  charged  back, 

Amounts  forward, 

Cash,     

Mdse,    - 

Proof, 

^  We  debit  Profit  and  Loss,  as  it  is  not 
an  expense. 

162 


8789  05 


1050 


978 


185 


11106 

5648  74 

^71:13 

18225  90 


Cash. 


3596  20 


2052 


Mdse, 


977  13T 


494 


JDrs, 


Sept.  30,  1875. 


9 

Crs, 


Mdse. 


I  82 


Cash. 


173G  92 


29 


16253  98 


855 
969 


90 


18171 

1905 

_445 

20522 


Am'ts  bro't  forward,    - 


Sunds.  To Mdge. 

R.  C.  Spencer, S.  B.  6, 

H.  W.  Flickiuger, "6, 

// 

Cash,      -    -    -    - Dr. 

To  Bills  Receivable,  J 1, 

rr 

Expense, Dr, 

To  Cash, 

// 

'Interest, Dr. 

To  J.  J.  DcHan  for  discount  allowed  on 
bill  Aug.  31, 

tr     

Mdse. Dr. 

To  American  Galvanizing  Co.  for  bill  of 
Work,  Sept.  20, 

^Cash, 

Mdse. 

Proof, 

^  This  should  have  been  credited  to 
DeHan  when  we  received  a  return  from 
the  draft  drawn  on  him.  See  Note  3,  p. 
51.  The  book-keeper  should  know  why 
the  draft  was  for  $68.71  Avhen  the  bill 
was  $70.84,  and  make  the  proper  entry 
to  credit  him  with  the  difference. 

=^  See  Note  2,  p.  157. 


163 


11106  03 


108  29 


2  13 


210  82 

11487:27 
5739  24 


20522  24 


Cash. 


564874 


90  50 


Mdse. 


1471  13 


1824  60 


1 


STOCK  ACCOUNT. 


Cr 


1875. 

iSept 


30 


To  Balance, 


Note.  Eead  p.  120 
for  directions. 


9 

12630 

85 

1875. 
July 
Sept. 

Oct. 

1 

30 

1 

12630 

85 

By  Cash,     -     -     - 
"   Profit  &  Loss,  f . 


By  Bal.  bro't  down. 


9000 
3630  85 


13630  85 


12630  85 


BUILDINGS  AND  FIXTURES. 


1875. 
July 


Aug. 


Oct. 


To  Cash,  -  -  - 
"  Bills  Pay.  fil, 
"  Sunds.  -  -  - 
"  Bills  Pay.    S3, 


To  Bal.  bro't  down, 


1 

2 
4 

5000 
5000 
3850 
3400 



1875. 

1 

15350 

15350 

By  Balance,    -   /. 


15250 


15350 


This  is  a  property  acconnt,  and  shows  what  Buildinjxs  and  Fixtures  have  cost  up  to  time  of 
closing.    Any  additional  cost  after  closing  can  be  posted  under  the  bal.  bro't  down.    See  p.  72. 


EXPENSE  ACCOUNT. 


1875. 

July 

1 

<c 

10 

(( 

30 

*< 

31 

Aug. 

3 

10 

<< 

31 

Sept. 

10 

'< 

30 

t( 

30 

To  Cash, 
do. 
do. 
do. 
do. 
do. 
do. 
do. 
do. 
do. 


1875. 

1 

5 

467 

31 

10 

Sept. 

30 

3 

21 

4 

75 

5 

20 

6 

19 

7 

20 

8 

21 

9 

90 

50 

759 

60 

By  Profit  &  Loss,  f. 


759 


759 


60 


This  is  a  branch  of  your  Profit  and  Loss  account.    It  shows  the  expense  of  conducting  your 
business.    Sec  1  5,  p.  72. 

164 


Dr. 

FliASK  ACCOUNT. 

C 

'r. 

1875. 

July 

(( 

<< 

(C 

Aug. 
Sept. 

1 

10 
20 
31 
10 
31 
10 
20 

1 

To  Cash,  -    -    -    - 
"      do.    -    -    -    - 
"      do.    -    -    -    - 
"  Fernald  &  Size, 
"  Cash,  -    -    -    . 
"      do.    -    -    -    - 
"       do.     -     -     -     - 

"      do.    -    -    -    - 

1 

2 
5 
6 

7 
8 

509 
150 
45 
14 
35 
20 
25 
30 

828 
828 

80 

80 
80 

1875. 
Sept 

30 

By  Balance,    -    /. 

0 

828 
828 

SO 

80 

Oct. 

To  Bal.  bro't  down, 

This  acc't  is  kept  to  show  the  exact  cost  of  the  Flasks  and  the  one  following  it,  to  show  the 
cost  of  patterns.    ^  4,  p.  72. 

PATTERN  ACCOUNT. 


1875. 

July 

1 

« 

10 

" 

20 

(( 

31 

Aug. 

31 

Sept. 

10 

20 
1 

Oct. 

To  Cash, 
do. 
do. 
do. 
do. 
do. 
do. 


To  Bal.  bro't  down, 


1875. 

1 

■  320 

Sept. 

so 

" 

;   115 

<i 

!     45 

2 

1     45 

6 

1     25 

7 

1     25 

8 

1     50 
625 

— 

625 

By  Balance, 


625 


625 


METAI.  ACCOUNT. 


1875. 
July 
Aug. 


To  J.  W.  Pope,  -    - 

"  Loomis  k  Collord,  -     - 


3 
6 

5700 
1050 

'1875. 
Sept. 

30 

6750 

i 

! 

! 

ByMdse.     -    -    f. 


6750 


6750 


This  is  a  branch  of  the  Mdee.  account,  and  is  kept  to  show  the  cost  of  metal.    It  closes  into 
the  Mdse.  acc't.    Note  1,  p.  65, 

165 


3 

Br. 


BILLS  PAYABLE. 


Cr. 


1875. 
Sept 


ToSunds.   .    SI, 

Bills  Pay.  S  6,  If  2,1 


5000 
2400 


1875. 

July 

Aug. 
(( 

Sept. 


ByB.&Fixt.   «1, 

do.  -  «2, 
"  Sunds.  -  S3, 
"  Bills  Pay.  S4, 
"  J.  W.  Pope, «  5, 
"  Bills  P.  S  2,  S  6,1 


1 

5000 

4 

2400 

6 

2500 

7 

2500 

li 

5700 

3 

2400 

Observe  that  the  notes  are  posted  separately,  and  M'hen  paid,  the  counter  post  and  nnmher 
must  be  on  the  same  line  with  the  first  entry.  No.  6  is  a  renewal  of  No.  2.  See  Bills  Payable 
Book. 


FOUNDRY  WAGES. 


1875. 

July 

20 

" 

31 

Au^. 

10 

ii 

31 

Sept. 

10 

20 

To  Cash, 
do. 
do. 
do. 
do. 
do. 


1875. 

1 

1 

800 

Sept. 

30 

2 

840 

5 

840 

6 

845 

7 

750 

8 

820 
4895 

=, 

By  Mdse. 


4895 


4895 


This,  like  "  Metal  Acc't,"  is  a  branch  of  Mdse.  acc't  and  closes  into  it. 


BILLS  B 

E< 

:)Ei\ 

A 

BLE. 

1875. 

1875. 

' 

July 

31 

To  D.  I.  Musselman,    S 1, 

2 

168 

29 

Sept. 

30 

By  Cash,    - 

-    SI, 

9 

168 

29 

Aug. 

2 

"   B  M.  Wortliington,  fi  2, 

4 

1415 

25 

Aug. 

10 

"    Sunds,  - 

-    S2, 

4 

1415 

25 

" 

10 

"  R.C.Spencer,«3, 

5 

978 

45 

Sept. 

20 

"      do.      - 

-    S3, 

8 

978 

45 

" 

20 

"   n.  W.  Flickinger,    fl  4, 

« 

250 

ft 

(( 

do.           S  5, 

(( 

185 

Sept. 

20 

"    Cash,    - 

-    S5, 

8 

185 

(C 

11 

"  B.F.Moore,  S6, 

" 

320 

50 

Sept. 

10 

"   J.  R.  McGinley.      S7, 

8 

525 

See  note  under  Bills  Payable  ace' t.  above. 
166 


Dr. 


B.   M.     Madison,  Wis.     WORTHINGTON. 


Or, 


1875, 
July 


To  Mdse. 
"      do. 


Sept.  8 
"     29 


1415 

577 


1992 


1875. 
Aug. 
Sept. 


By  Bills  Rec. 

"    Loomis  &  Collord, 


S2, 


1415 

577 


1992 


We  make  this  account  show  the  maturity  of  each  hill,  eo  that  Its  collection  can  be  attended 
to  at  the  proper  time.    In  business  all  accounts  should  be  so  posted. 


D.  Li.      Quincy, 

III. 

MUSSELMAN. 

1875. 

1 

1875. 

"^ 

July 

20 

ToMdse.i     -    -    - 

1 

126 

62 

July 

31 

By  Bills  Rec     -  t\, 

2 

168 

29 

<i 

31 

"   Interest,  -    -    - 

2 

1 

67 

Aug. 

31 

''  Sunds.     -    -    - 

6 

1160 

75 

tt 

" 

"  Mdse.  (20tli),    - 

3 

40 

1329.04 

Aug:. 

10 

«       do.       -    -    - 

4 

1158 

75 

Sept. 

1 

"       do.       -    -    - 

7 

2 

« 

20 

"   Cash,  -    -    -    - 
"  Interest,  -    -    - 

2495.40 
1329.04 

1166.36 

8 

1131 
34 

54 

82 

This  bill  is  over-paid,  the  book-keeper  must  investigate  this.    See  Jour.  p.  157. 
ROBERT  C.     MiltvauTcee,  Wis.     SPENCER. 


1875. 

July 

31 

Aug. 

10 

Sept. 

30 

To  Mdse.  - 
"  do.  - 
"     do.    - 


1918.80 
982.80 


1875. 

2 

982 

80 

Aug. 

10 

4 

81 

" 

9 

855 

By  Mdse.  short,     - 
Bills  Rec.      «8, 


4  35 

978145 


H.  W.     ndladelphia,  Pa,    FLICKINGER. 


1875. 
July 
Sept. 


To  Mdse. 
"      do. 


1875. 

2 

448 

Apr. 

20 

9 

969 

60 

20  Bills  Rec.     S3  &  4, 


167 


435 


INTEREST  ACCOUNT. 


Cr. 


1875. 
Auff. 


Sept. 


To  Bills  Eeceivable,      52, 

"  B.  F.  Moore,      -    -    - 

"  Bills  Payable,    -      J  3, 

"  D.  L,  Musselman,  -    - 

"  Cash,  ------ 

"  Bills  Receivable.      fi3, 

"  J.  J.  DeHan,     -    .    - 

109.59 

48.04 


14  15 
16 

26:68 
34  82 
13,20 
2  61 
13 


1875. 
July 
Sept, 


By  T).  L.  Musselman,  -  - 
"  Loomis  &  Collord,  - 
"  D.  L.  Musselman,  -  - 
"    Profit  &  Loss,     -  48.04  f. 


The  above  account  shows  what  is  gained  or  lost  by  Interest.  See  ^  5,  p.  72. 
CASH  ACCOUNT. 


1875. 
July 
Aug. 
Sept. 


Oct. 


To  Sunds. 
do. 
do. 


To  Bal.  bro't  down,'  -    - 


6250 
1905 


17194 


1875. 
July 
Aug. 
Sept. 


By  Sunds. 
"       do. 
"       do. 
"   Balance, 


/. 


Compare  this  with  the  Balance  in  your  Cash  Book. 
MDSE.  ACCOUNT. 


1875. 
July 
Aug. 
Sept. 


Oct. 


To  Sunds.  -  -  - 
''  do.  -  -  - 
do.  -  -  - 
"  Metal,  -  -  - 
"  Wages,  -  -  - 
"    Profit  &  Loss,  - 


-    f. 


To  Bal.  bro't  do^vn,    - 


117 

302 

445 

6750 

4395 

_4977 

17488 
"6660 


1875. 
July 
Aug. 
Sept. 


?7 


Sunds. 

do. 

do. 
Balance  s 


3 
6 
9 
9 

3628 
3903 
3295 

GGGO 

17488 

See  p.  86.    We  give  no  Inventory  for  this  set. 
B.  F.     Atlanta,  Ga.     MOORE. 


1875. 
Aug.  2 


To  Mdse. 


1136 


1136 


1875. 
Aug. 


By  Cash,    -    -    -    - 

"   Bills  Receivable, 
"  Interest,  -    -    - 


S6, 


4 

800 

5 

320 

" 

16 

1136 

=^^^ 

168 


Dr. 

A. 

STETLER  &  SON. 

Cr. 

1875. 
July 

1 

By  Building  &  Fix. 

2 

2400 

B.  F.    Boston,  Mass.     STURTEVANT. 

1875. 
Aug. 

20 

To  Casli,  -    -    -    - 

5 

450 

= 

[1875. 
June 

25 

By  Building  &  Fix. 

2 

450 

i^'ERNALD  &  SISE. 

1875. 
July 

2 

By  Flasks,    -     -    - 

2 

14  80 

J.  W.  POPE. 

r8T5T 

Sept. 

1 

ToBiUsPay.  -  S5, 

7 

5700 

= 

1875. 
July 

31 

By  Metal,    2  Bills, 

3 

5700 

McQUISTOX    nttshtirgh,  Pa.    &  COMPANY. 

1875. 
July 

20  ByMdse.    -    -    - 

3 

67 

50 

SAM'Li  G.  B.     Baltimore,  3Id.     COOK, 

1875. 
Sept. 

10 

To  Cash,  -    -    -     - 

7 

28 

= 

1875. 
July 

20 

By  Mdse.      -    -    - 

3 

28 

169 


Dr. 

I>.  CLINTON 

City 

HICKS. 

Cr. 

1875. 

Aug. 

2 

ToMdse.      -     -    - 

4 

30 

EXCELSIOR     St.  i.ouis,  Mo.    MFG.  CO. 

1875. 
Aug. 


To  Mdse. 
"   Casli,  - 


313 
137 


450 


1875, 
Aug. 


20 


By  Casli, 


450 


450 


JACKSON    City.    CAGLE. 


1875. 
Aug. 


20 


To  Mdse.  -    - 


5 

15 

JOHN     K.     FittsburgJi,  Pa.     McGINLEY. 


1875, 
Aug. 


20 


To  Mdse. 


1050 


1875. 
Sept. 


10 


By  Sunds, 


1050 


GEORGE  J.    Pittsbiirah,  Pa.    L.UCKEY. 


1875. 
Aug. 


31 


To  Mdse. 


48 


60 


170 


Dr, 


«T.  J.     Cincinnati,  O.     DEHAN, 


8 

Cv. 


1875. 
Aug. 
Sept. 


To  Mdse. 
"     do. 


75.47 

70.84 


1875. 

5 

70 

84 

Sept. 

20 

8 

4 

63 

30 

By  Cash, 

"   Discount, 


LOOMIS  &     Pittsburgh,  Pa.     COLLORD. 


1875, 
Sept. 


To  Sunds. 


589 


05 


1875. 

Aug; 


10 


By  Metal, 


1050. 
589.05 


1050 


D.  K. 

Manchester, 

N. 

n.    lilLLIBRIDGE. 

1875. 
Sept. 

1 

To  Mdse.      . 

-     - 

7 

282 

13 

JOHN    Tro^j,  K.  T.    CAKNELL. 


1875. 
Sept. 


10 


To  Mdse. 


675 


AMERICAN  GAI.VANIZING  CO. 


1875. 
Sept. 


20 


By  Mdse. 


171 


210 


9 
Dr. 


PROFIT  AND  LOSS. 


Cr 


1875. 
Sept.  10 
"     30 


To  J.  R.  McGinley, 
"  Expense,  -  1 
"  Interest,  -  f. 
"   Stock,  13J6-15     1 


1875. 

8 

525 

Sept. 

30 

1 

759 

60 

5 

61 

55 

1 

3630 

4977 

85 

By  Mdse. 


4977 


4977 


See  p.  48. 


BALANCE  ACCOUNT. 


1875. 
Sept.  30 


D,  L.Musselman,f 
R.  C.  Spencer,  -     ■ 
H.  W.  Flickinger,  - 
D.  Clinton  Hicks, 
Jackson  Cagle, 
George  J.  Luckey. 
J.  J.  DeHan,     - 
D.  R.  Lillibridge, 
John  Carnell,   - 

Total  book  acc'ts, 
Bills  Receivable, 
Buildings  &  Fixt. 
Flasks,    -    -     - 
Patterns,      -    - 
Cash,-     -     -    - 
Mdse.       -     -     - 

28884.32 
16254.07 


1166 
936 

982 

30 

15 

48 

4 

282 

675 


4140 

1095 

15250 

828 

625 

285 

6660 


28884 


60 


92 


1875. 
Sept, 


30 


A.  Stetler&Son,  f. 
Fernald  &  Sise, 
McQuiston  &  Co. 
Loomis  &  Collord 
Am.  Galv.  Co,  - 

Total  book  acc'ts,  - 
Bills  Payable,  -    - 

Stock,      -    -    - 


2400 

14 

67 

460 

210 


3154 
13100 
12630 


28884 


92 


See  p.  49. 

Note.  For  the  convenience  of  the  book-keeper,  when  making  out  his  balance  sheet,  all  per- 
sonal accounts  should  be  taken  to  this  account  firpt,  and  a  footing  line  drawn  on  each  side. 
Then  add  them  up,  and  insert  amount  and  explanation  as  above.  See  Balance  Sheet,  pp.  174, 
175.    The  amounts  on  the  Balance  Sheet  should  check  with  the  amounts  in  the  Balance  Acc't. 


172 


SET  IV.— DOUBLE  ENTRY  BOOK-KEEPING. 


EXERCISES  IN  BUSINESS  FORMS. 

1.  After  writing  the  answers  to  questions  on  p.  50,  make  out  the 
following  forms.  Write  bills  on  bill  paper,  and  all  other  forms  on  cap 
or  letter  paper.  We  give  forms  on  pages  134,  135,  136,  137,  138, 
and  139. 

2.  When  the  Journal  Entry  does  not  give  particulars  for  the  required 
form,  the  student  can  obtain  them  in  the  original  entry. 


See  Jour,  entry,  July  1,  p.  155. 
See  Jour,  entry,  July  10,  p.  155. 
See  Jour,  entry,  July  20,  p.  155. 
See  Jour,  entry,  July  31,  p.  156. 
See  Jour,  entry,  July  31,  p.  156. 


Write  note  given  to  Wilhelm  &  Co.  for  $5000. 

Write  bill  for  goods  Bold  B.  M.  Worthington. 

Write  bill  for  goods  sold  D.  L.  Musselman. 

Write  note  received  from  D.  L.  Musselman. 

Write  bin  for  goods  sold  R.  C.  Spencer. 

Write  letter  of  acknowledgment  to  B.  M.  Worthington. 

See  Jour,  entry,  Aug.  2,  p.  158. 
Write  letter  of  acknowledgment  to  B.  F.  Moore.  See  Jour,  entry,  Aug.  2,  p.  158. 
Write  bill  for  goods  sold  B.  F.  Moore.  See  Jour,  entry,  Aug.  2,  p.  158. 

Write  notes  received  from  H.  W.  Flickinger.  See  Jour,  entry,  Aug.  20,  p.  159, 

Write  letter  to  B.  F.  Sturtevant  to  enclose  Draft  for  $450. 

See  Jour,  entry,  Aug.  20,  p.  159. 
Write  letter  that  Sturtevant  must  send  to  acknowledge  the  receipt  of  the  $450. 

See  Jour,  entry,  Aug.  20,  p.  159. 
Write  letter  of  acknowledgment  to  Ex.  Mfg.  Co.        See  Jour,  entry,  Aug.  20,  p.  159. 
Write  receipt  and  duplicate  which  Standard  Bolt.  Co.  must  give  for  the  payment  yon 
account  of  the  Ex.  Mfg.  Co.  See  Jcur.  entry,  Aug.  31,  p.  160, 

Write  draft  on  B.  M.  Worthington.  See  Jour,  entry,  Sept.  1,  p.  161. 

Write  Bills  Payable,  $4,  See  Jour,  entry,  Sept.  1,  p.  161. 

Write  receipt  J.  W.  Pope  mnst  give.  See  Jdur.  entry,  Sept.  1,  p.  161. 

Write  J.  R.  McGinley's  note.  See  Jour,  entiy,  Sept.  10,  p.  162. 

Write  bill  for  goods  sold  W.  B.  Richards.  See  Jour,  entry,  Sept.  20,  p.  162. 


Form  1. 
Form  8. 
Form  8. 
Form  1. 
Form  8. 

Form  21. 
Form  21. 
Form  8. 
Form  2. 

Form  20. 

Form  21. 
Form  21. 
make  on 
Form  15. 
Form  6. 
Form  1. 
Form  14. 
Form  2. 
Form  9. 


173 


Dr 


BAL.ANCE  SHEET  OF 

EFFECTS.       

Amount  due  by  Sundry  persons  on  book  acc'ts,     -    -    - 

"  "  "•  ■    "        notes, 

Cost  of  Buildings  and  Fixtures, 

"     of  Flasks, 

"     of  Patterns, 

Cash  on  hand, 

Mdse.  on  hand,   --- 


1875. 
Sept. 


1875. 
Sept. 


30 


1875. 
Sept. 


30 


The  amounts  here  and  on  the  opposite  side  are  in  the  same 
order  as  in  the  Balance  account. 


PROFIT  AND  LOSS 


LOSSES.        

Incidental  losses  per  account, 

Amount  of  expenses  to  date,  ---------- 

Loss  on  Interest, 

Gain  on  3  mouths  business  to  my  Cr.  in  Stock  Account, 


This  abstract  gives  all  the  losses  and  gains  in  compact  form. 


MERCHANDISE 


Cost  of  Incidental  purchases  per  Mdse.  account,  -    -    -    -    p.  5, 

"      Metal  "  "    account, p.  2, 

"      Foundry  Labor,  per  account, p.  3, 

Gain  on  Mdse.  sales  for  3  months,  - 


JVote.  No  form  of  Balance  Sheet  that  we  have  seen  is  so 
simple  and  so  easily  understood  as  the  one  presented  above. 


174 


15250 
828  80 
625 


4140 
1095 


16703 




— 

525 

759 

61 

3630 

60 
55 

85 

4977 

= 

866 
6750 
4805 
4977 


17488  17 


.  .     .       .       .        Sept.  30,  1875. 

LIABILITIES.   

Amount  due  to  Sundry  persons  on  book  acc'ts, 
"  "  "  "        notes,     -    -    • 

"       of  my  capital  July  1, 1875, ■ 

"  "      gam  now  added, 

"  "      capital  at  this  date, 


Cr 


1875. 
Sept. 


30 


1875. 
Sept. 


30 


1875. 
Sept. 


9000 
3630 


3154  07 
13100 


126301 


03 


The  learner  can  insert  his  own  name  in  the  blank  space  in 
headiu":  line  above. 


ACCOUNT. 


GAINS. 


Gain  on  Mdse.  as  per  statement  below, 


ACCOUNT. 


Sales  to  date  per  Mdse.  account, 
MdBC.  on  hand  at  this  date,    - 


175 


4977 


4977 


p.  5, 


mm 


17488 


SET  IV.— DOUBLE  ENTRY  BOOK-KEEPING. 

iT.  B.  Direct  tlie  learner  to  journalize  and  post  the  following  transactions 
on  loose  slieets  of  paper ;  take  off  a  proof  sheet,  close  the  Ledger  and  make  out 
a  balance  sheet.     See  Form,  pp.  174,  175. 

Oct.    3.     Commenced  business  with  a  cash  capital  of      -----  ^5000. 

"     P'd  cash  for  books  and  stationary  for  office  use,    -    -    -    .  30. 

"      P'd  cash  for  1  months  rent  of  store  in  advance,     -    -     -     -  100. 

"     Bo't  of  P.  Duff  &  Sons,  on  %,  500  bbls.  Flour,  @  $8,      -    -  4000. 

3.  Bo't  of  W.  H.  Hunker,  for  cash,  500  bu.  Wheat,  @  $1.50,  -  750. 

4.  Sold  J.  H.  Hampton,  on  %,  200  bbls.  Flour,  @  $10,   -    -    -  2000. 

5.  Sold  C.  L.  Magee,  on  %,  100  bu.  Wheat,  @  $1.70,     -    -    -  170. 

6.  Rec'd  J.  H.  Hampton's  note,  @  30  days,  in  full,    -    -    -    -  2000. 
"     P'd  cash  for  State  Mercantile  license,      -------  13. 

7.  SoldR.  B.Brown,  on  %,  400  bu.  Wheat,  @  $1.75,    -    -    -  700. 
9.    Gave  P.  Duff  &  Sons,  on  ^,  J.  H.  Hampton's  note  for    -    -  2000. 

10.  Sold  M.  H.  Houseman,  on  %,  100  bbls.  Flour,  @  $10,     -     -  1000. 

11.  Gave  P.  Duff  &  Sons  m.y  order  on  C.  L.  Magee  for     -    -    -  170. 

12.  B.  B.  Brown  has  failed,  and  I  settle  with  him  for  50/'  on 
the  dollar  of  the  amount  due  me. 

Rec'd  S.  Kilgore's  note,  @  30  days,  for  the  amount    -  $350 

The  remainder  is  lost,  -    -   _ 350  700. 

13.  Bo't  of  W.  F.  Lang  &  Co., on  %,  100  doz.  Brooms, @  $2.00,  -  200. 

14.  Bo't  of  Union  Manufacturing  Co.  100  doz.  Globe  Wash- 
boards, @  $2.50,  250. 

16.  P'd  cash  for  freight  on  Washboards,  -    -     - 12.50 

"        "      "      "    donation  to  sufferers  by  explosion,     ...     -  25. 

17.  Sold  Willis  McCook,  on  %,  100  bbls.  Flour,  @  $10,  -    -    -  1000. 

18.  P'd  cash  for  clerk  hire, 50. 

"        "      "      "    postage  stamps,      - 5. 

"      Sold  P.  Reymer,  on  %,  50  doz.  Brooms,  @  $2.50,  -    -    -    -  125. 

19     Sold  Geo.  I.  Stahl,  on  ^,  50  doz.  Washboards,  @  $3,     -    -  150. 
"      jyferchandise  on  ha7id,    ^WS^,25, 

Afiswer.  Net  gain,  $391.75.     Net  capital,  $5391.75. 
176 


COMMERCIAL  CALCULATIONS. 


ADDITION. 

We  desire  to  urge  upon  young  accountants  the  necessity  of  frequent 
exercises  in  adding  long  columns,  to  secure  proficiency.  Many  trouble- 
some errors  result  from  a  want  of  accuracy.  These  can  be  avoided  only 
by  constant  practice.  An  improved  method  of  addition  is  illustrated  by 
the  following  figures — 

2348.75  2.1 

8651.68  2A 

1031.40  2.3 

796.32  3.1 

9084.26  1.9 

21912.41  21 

We  commend  the  method  of  the  above  illustration  as  an  improvement 
that  will  save  adding  several  columns  when  the  amount  to  be  carried  for- 
ward has  been  forgotten,  or  as  a  means  of  testing  a  column  by  itself 
without  the  labor  of  going  over  those  that  precede  it:  To  explain — the 
amount  of  the  first  cent  column  is  2.1,  that  of  the  next,  2.4.  Draw  a  hne 
to  separate  the  dollars  and  cents.  The  amounts  of  the  next  columns,  in 
their  order,  are  2.2,  3.1,  1.9,  and  the  last  21.  The  right  hand  figures 
and  the  last  left  hand  figure  are  the  product.  The  left  hand  figures,  ex- 
cept the  last  one,  are  the  amounts  to  be  carried  to  the  columns  to  which 
they  belong. 

IMPROVED  METHOD  OF  FINDING  INTEREST  FOR  MONTHS  AND  DAYS. 

Rule  1.     To  find  the  interest  at  six  per  cent,  for  months. 

Remove  the  decimal  point  two  places  to  the  left  in  the  principal,  and  mul- 
tiply by  half  the  number  of  months. 

Rule  2.    To  find  the  interest  at  six  per  cent,  for  days. 

For  60  days,  point  off  two  places  in  the  principal,  and  it  becomes  the  in- 
terest. For  6  days,  point  off  three  places  in  the  principal,  and  it  becomes  the 
M  177 


COMMERCIAL   CALCULATIONS. 


interest.    For  5, 10, 15,  20,  and  30  days,  take  aliquot  parts  of  the  product,  when 

found  for  60   days.      For   0+^*^^  Tmml-»prs   TTmlt,ir>lv  fliR   in+.pT'PK+.   fnr   (\  rlnvH   V>v  i 

the  given  number  of  days. 


;200  for  4  months  2.00  x  2 

= 

$  8.00 

600   ' 

'     5 

" 

6.00  x2| 

— 

15. 

750   ' 

'     3 

" 

7.50  xli 

- 

11.25 

500   ' 

'     9 

" 

5.00   x4i 

= 

22.50 

811    ' 

'    IS 

" 

8.11   x9 

== 

72.99 

100   ' 

'   60 

days 

1.00 

= 

1. 

150    ' 

'   30 

" 

1.50  X   i 

= 

.75 

300    ' 

'    20 

" 

3.00  X  k 

= 

1. 

800    ' 

'    15 

u 

8.00  X  \ 

= 

2. 

900   ' 

*    10 

<■' 

9.00  X  A 

= 

1.50 

100    "     6 

'» 

.100 

= 

.10 

200    ' 

'    12 

" 

.200x2 

= 

.40 

700    ' 

'   24 

" 

.700x4 

= 

2.80 

800    ' 

'    11 

" 

.800x1,1 

= 

1.46 

1200    ' 

'   13 

" 

1.200x21 

= 

2.60 

1.  Required  the  interesi 

2.  "  " 

5. 

6.  " 

(i  ly  (I  tt 

"  8.  "  " 

II  n  'C  C( 

"        10. 

il  <^  (I  It 

"  12.  "  " 

"  13.  "  " 

"  lU. 

"  15. 

Teachers  should  furnish  numerous  examples  to  make  the  pupil  perfectly 
familiar  with  the  working  of  the  rules.  We  consider  this  the  shortest  and  best 
method  in  use. 

SIMPLE  EQUATIONS. 

Eule.  Multiply  the  amount  of  each  sale  by  the  number  of  days  that  inter- 
vene between  its  maturity  and  that  of  the  first  amount  due.  Divide  the 
sum  of  these  products  by  the  total  amount  of  sales ;  the  quotient  is  the 
equated  time  counted  forward  from  the  day  upon  which  the  first  amount 
falls  due, 

JSfote.  Equations  are  fully  explained  in  all  arithmetics,  and  we  do  not 
deem  it  necessary  to  give  them  extended  notice  here  ;  therefore  we  illustrate 
the  rule  by  one  example  only. 

Bx.  1.   Sold  for  account  of  Proctor  &  Gamble,  Cincinnati,  Ohio. 

June    1,  20  bbls.  Lard  Oil,    900  galls.  @  $1.00,  %  900.  for  Cash. 

"      10,  10      "            "          450     "      @    1.00,  450.  on  30  days. 

"     20,  30      "            "        1350     "      @      .90,  1215.  "     GO    " 

"     30,  10      "            «          450     "     @      .90,  405.  "     90    " 

Required  the  equated  time  when  the  total  amount  of  the  sales  will 
fall  due. 

•     178 


COMMERCIAL   CALCULATIONS. 


Solution  of  preceding  example. 

Date  of  sale,      Terms,         Due,            Am't, 

No.  of  days, 

June    1,      Cash,        June    1,    $  900. 

"    10,      30  days,    Julj  10,        450. 

X   39  =  17,550 

*'    20,      60    "       Aug.  19,      1315. 

X   79  =  95,985 

"    30,      90    «        Sept.  28,        405. 

X  119  =  48,195 

3970. 

)161,780 

forward  from  June  1,  tlie  first  amount  due. 

Answer.  July  35. 
COMPOUND  EQUATIONS. 

For  ascertaining  the  average  day  of  maturity  on  accounts  composed  of  debits 
and  credits  of  various  dates  and  amounts. 

Rule.  Find  the  equated  time  of  each  side  of  the  account  by  a  simple 
equation ;  then  multiply  the  lesser  side  by  the  time  that  intervenes  between 
these  two  equations,  and  divide  the  product  by  the  balance  of  the  account ;  the 
quotient  is  the  time  to  count  back  or  forward  from  the  date  on  which  the 
greater  side  of  the  equation  falls  due.  If  the  balance  is  on  the  side  of  the 
earliest  equation,  count  hack  from  that  date ;  but  if  it  be  on  the  side  of  the  latest 
equation,  count  forward  from  that  date. 

Example  1.   Sold  H.  J.  Lynch — 

April    1,    Mdse.  on  4  mos.  time,    -  $400. 

"     20,          "          4     "  "        -       350. 

May     1,           "          4     "  "        -      500. 

Cr. 

May   15,    By  Cash  on  acc't,  -    -    -      200. 

June    1,      "        «           "  ...      100. 

"     18,      "        "           "  ...       150. 
Required  the  day  on  which  the  balance  of  his  acc't  will  fall  due  by  average. 

Solution.  Dr.  side  of  account. 

Date  of  sale,      Terms,       Due,  Am't,      Days,     Product, 

April    1,      4  mos.    Aug.    1,    $  400 

"     20,      4      "         "      20,        350  X  19  =    6,650 
May     1,      4      "       Sept.    1,      _500  x  31  =  15,500 

1350  )23,150  {V7-^is  days  to  count 

When  the  fraction  of  a  day  is  half,  or  over,  it  is  counted 
179 


COMMERCIAL   CALCULATIONS. 

as  a  whole  one,  hence  we  count  18  days  from  Aug.  1,  wliidi  gives  Aug.  19  as 
the  maturity  of  the  Dr.  side  of  the  account. 

Cr.  side  of  acc't. 
Date,  Due,  Am't,    Days,     Product, 

May  15,    May  15,    $200 
June    1,    June    1,      100  x  17  =  1700 
«     18,       "     18,    J50  X  34  =  5100 

450  )  6800  (15  days  to  count  from  May  15, 

which  gives  May  80  as  the  maturity  of  the  Cr.  side  of  the  account.  The  lesser 
side  ($450)  multiplied  by  the  number  of  days  (81)  intervening  between  May  30 
and  Aug.  19  =  36450  -J-  800  (the  balance)  =  ^^yg,  or  46  days,  as  is  counted  when 
the  fraction  exceeds  a  half.  The  balance  being  on  the  Dr.  side,  and  the  Dr. 
side  being  the  latest  date,  Aug.  19,  we  count  forward  from  that  date  46  days 
and  obtain  the  answer,  Oct.  4. 


STORAGE  EQUATIONS. 

To  ascertain  the  average  time  goods  are  subject  to  charg3  for  storage  wlien 
irregular  amounts  have  been  put  in  at  various  times. 

Bule.  Multiply  the  number  of  packages  by  the  number  of  days  they  have 
been  in  store.  Divide  the  product  by  30,  and  the  quotient  will  be  the  number 
of  packages  subject  to  charge  for  one  month's  storage;  or  if  part  have  been 
taken  out,  make  the  same  equation  for  amount  taken  out,  deduct  the  sura  of  it 
from  the  sum  of  the  stored  product  and  divide  the  remainder  by  30.  The  quo- 
tient will  be  the  number  of  packages  on  which  to  charge  one  month's  storage. 


EXERCISES  IN  OPENING  BOOKS  BY  DOUBLE  ENTRY. 

Ex.  1.  I  begin  business  with  cash  on  hand,  |2000.  Mdse  on  hand,  $1000. 
I  hold  George  Fences  note  for  $500,  and  own  house  and  lot  No,  119  Chambers 
Street,  worth  $10000.     Required  the  Journal  entry  for  opening  my  books. 

Ex.  2.  Commenced  business  with  cash  on  hand,  $2500.  Stock  in  Market 
National  Bank,  $5000.  Note  of  John  Dalzell,  $1500.  Mdse.  on  hand,  $3000. 
I  owe  on  my  note  to  M.  Hay,  $500.  I  owe  W.  H.  Hamilton  on  book  acc't,  $300. 
Required  the  Journal  entry  to  open  my  books. 

180 


COMMERCIAL   CALCULATIONS. 

Ex.  3.  H.  J.  Lyncli  and  E.  F.  Armstrong  begin  business  under  tlie  firm 
name  of  H.  J.  Lyncli  &  Co.  Mr.  Lyncli  pays  in  casli  $20000.  Mr.  Armstrong 
pays  in  cash  $5000.     Required  tlie  opening  Journal  entry. 

Ex.  4.  James  Johnston  and  John  R.  McGinley  form  a  co-partnersliip  for  tlie 
purpose  of  carrying  on  tlie  Dry  Goods  business.  McGinley  pays  in  cash, 
$10000,  and  owes  on  his  note  to  M.  McMillan  $500.  Johnston  pays  in  cash 
$5000,  and  owes  T.  W.  Myers  on  book  acc't  $300.  The  firm  assumes  and 
agrees  to  pay  the  liabilities  of  each  partner.  Required  the  Journal  entry  for 
opening  the  firm's  books. 

Ex.  5.  Jas.  Stevenson  and  Wm.  McCance  commence  business  with  the  fol- 
lowing Assets  and  Liabilities.  Stevenson  pays  in  cash  $4000 ;  Mdse.,  $3000. 
He  owes  on  his  individual  notes  $400 ;  to  H.  Rea  on  book  acc't,  $1 00.  McCanco 
pays  in  cash  $5000  ;  notes  due  him,  $2000 ;  Mdse.,  $3000.  He  owes  on  his 
individual  notes  $500.  The  firm  assumes  and  agrees  to  pay  the  debts  of  each 
partner.    Required  the  Journal  entry  to  open  the  firm's  books. 

Ex.  G.  N.  Doty  and  G.  W.  Dean  begin  business  with  the  following  assets — 

Doty  pays  in  cash  $5000 ;  R.  S.  Waring's  note  for  $5000. 
Dean  pays  in  cash  $3000 ;  N.  P.  Reed's      note  for  $7000. 

It  is  agreed  by  each  to  deduct  4  months  interest  on  the  notes  paid  in  as  capital. 
Required  the  Journal  ejatry  to  open  the  books. 

Ex.  7.  Josiah  King  and  Simon  Johnson  form  a  co-partnership  for  the  pur- 
pose of  carrying  on  the  Drug  business. 

King  pays  in,  as  capital,  cash  $20000.     Johnson  contributes  the  stock  and 
fixtures,  owned  by  him,  as  follows — 

Mdse.  per  inventory,  taken  by  appraisers,    -    -    -    -     $30000 

Store  furniture  and  fixtures,  including  bottles,  &c.    -         5000 
Two-horse  wagon  and  team,      _-_..-_-  500 

Cash  in  drawer,  _------------  150 

Johnson  owes  debts  which  the  firm  assumes,  viz. : 

To  P.  Duff  &  Sons  on  book  acc't, $150 

"  "         «      on  note, 500 

"   To  Colgate  &  Co.  on  book  acc't,    -    -    -    -      1000 
"   City  Treasurer  for  last  year's  business  tax,         150 
Required  the  Journal  entry  to  open  the  books  for  the  new  firm. 

181 


COMMEKCIAL   CALCULATIONS. 


EXERCISES  IN  CLOSING  THE  LEDGER. 

Example  1.   The  following  accounts  are  open  on  my  Ledger — 

Stock  Acc't  is     -    -    -  Dr.  $1300  Cr.  $4500 

Mdse. "  7600  "  8100 

Mdse.  on  liand,  per  inventory,  -    -    -     $1375 

Cash, Dr.  4200  Cr.  2400 

Bills  Receivable,     -    -  "  2950  "  800 

Bills  Payable,      -    -    -  "  500  "  1000 

Profit  &  Loss,      -    -    -  "  1150  "  900 

On  paper,  ruled  the  same  as  a  Ledger,  write  out  a  specification  showing  the 
accounts  debited  and  credited  as  above.  Open  a  Balance  account  and  close  all 
of  the  accounts,  as  directed  by  rules  for  closing,  p.  41.  Then  reopen  the 
Ledger  by  bringing  down  the  balances  to  continue  the  business. 

£Jx.  2.  J.  R.  McGinley  and  James  Craven,  partners,  at  the  close  of  a  year's 
business  find  their  accounts  as  follows — 

J.  R.  McGinley,    -  -  Dr.  %    600  Cr.  $4800 

James  Craven,      -  -  "  500  "  4500 

Profit  &  Loss,        -  -  "  400  «  2200 

Balance,       ...  -  «  11500  "  1500 

Partners  are  equal  in  gain  or  loss.  Required  the  Ledger  specification  showing 
the  accounts  closed  and  balances  bronght  down. 

Ex.  3.   H.  D.  Beerhman  and  Samuel  Matthews  desiring  to  close  their  part- 
nership books,  find  their  acc'ts  stand  as  follows— 


H.  D.  Beerhman's  acc't,     Dr.      $  1350  Cr.     $7500 

Samuel  Matthew's   " 

Expense, 

Interest, 


Commission, 
Profit  k  Loss, 
Balance, 


1175  "        3200 

800  «  000 


300  "  500 

000  "  2000 

700  "  2000 

11000  "  125 


H.  D.  Beerhman  has  f  and  Samuel  Matthews  f  interest  in  the  gain  or  loss. 
Required  the  Ledger  specification  showing  all  the  accounts  closed  and  bal- 
ances bronght  down. 

182 


COMMERCIAL  CALCULATIONS. 

PARTNERSHIP  SETTLEMENTS. 

Division  of  profits  according  to  amount  of  capital  invested. 

Bide  by  proportion.  As  the  wliole  capital  is  to  each  partner's  capital,  so  is 
the  whole  gain  to  each  partner's  share  of  the  gain ;  i.  e.,  multiply  the  whole 
gain  by  each  partner's  capital  and  divide  the  product  by  the  whole  capital.  The 
result  is  each  partner's  share  of  the  gain. 

Ex.  1.  M.  Bailey,  W.  McKnight,  and  R.  P.  Duff,  partners  in  business,  have 
a  total  capital  of  $10000,  and  the  profits  are  to  be  divided  in  proportion  to  the 
amount  of  capital  invested  by  each.  M.  Bailey  paid  in  $4000  ;  W.  McKnight 
$3500  ;  and  R.  P.  Duff  $2500.  At  the  expiration  of  one  year  they  have  gained 
$3300.     Required  the  division  of  this  profit  among  the  partners. 

Solution.   Whole  capital,        Bailey's  capital,  Whole  gain,        Bailey's  gain, 


10000 
Whole  capital, 

10000 
Whole  capital, 

10000 


4000  : :  3300 

McKnight's  capital.  Whole  gain, 

3500  ::  3300 

Duflf's  capital,  Whole  gain, 

2500  : :  3300 


1320 
McKnight's  gain, 

1155 
Duff's  gain, 


Ex.  2.  J.  W.  Houston  pays  in  to  the  firm,  as  capital,  $5000 ;  Wm.  Young 
pays  in  $3300 ;  Wm.  McKown  pays  in  $3700 ;  making  a  total  capital  of 
$11000.  The  profits  amount  to  $4100,  and  aVe  to  be  divided  in  proportion  to 
the  amount  of  capital  paid  in  by  each  partner.  Required  the  division  of  this 
profit  among  the  partners. 

Answer.  J.  W.  Houston's  gain,  $1863.64;  Wm.  Young's  gain,  $1230; 
Wm.  McKown's  gain,  1006.36. 

PARTNERSHIP  SETTLEMENTS. 

Adjustment  of  interest  where  one  partner  has  drawn  out  more  than  an- 
other. 

Rule.  Find  the  balance  of  interest  due  each  partner ;  add  together  these 
various  balances  and  divide  the  sum  by  the  number  of  partners  ;  the  quotient 
is  the  average  amount  of  interest  due  to  each  partner,  provided  they  were 
equally  interested.  Debit  a  partner  for  whatever  amount  he  is  below  the  aver- 
age, and  credit  if  above  the  average. 

Note.   The  debits  and  credits  in  Journal  entry  must  be  equal. 

Ex.  1.  Chas.  P.  Duff  paid  in  as  capital  to  the  firm  of  Duff  Bros.  $20,000, 

183 


COMMEECIAL  CALCULATIONS. 

for  one  year,  and  in  six  months  drew  out  $5000.    Wm.  H.  Duff  paid  into  tlie 
firm,  as  capital,  $20000,  for  one  year,  and  in  six  months  drew  out  $2000. 

Required  the  amount  of  interest  Chas.  P.  Duff  will  owe  W.  H.  Duff  to 
equalize  their  accounts.     Write  the  necessary  Journal  entry. 

Solution.  C.  P.  Duff  paid  in  for  1  year  $20000  @,Q%    -    -    -    -        1200 
''  drew  out  "  6  mos.     5000  &&%    -    -    -    -        J50 

Bal.  of  interest  due  him, 1050 

W.  H.  Duff  paid  in  for  1  year  $20000  @,Qfc    -    -  1200 
"  drew  out  "  6  mos.     2000  (^6%    -    -      60 

Bal.  of  interest  due  him, 1140 

Total  interest  due  both, 2)2190 

If  equally  interested  there  would  be  due  each,   -    -    -        1095 

The  am't  due  C.  P.  Duff  is  only 1050 

He  is  below  the  average, 45 

W.  H.  Duff's  half  of  the  total  interest  is  -    -    -  1095 

Interest  actually  due  him  is 1140 

He  is  above  the  average, 45 

To  equalize  the  interests,  C.  P.  Duff  owes  W.  H.  Duff  $45,  and  the  Journal  entry  to  adjust 

the  same  is  C.  P.  Duff,  Dr. 45 

ToW.H.  Duff, 45 

Tliis  method  avoids  the  necessity  of  passing  the  interest  through  the  Inter- 
est or  Profit  &  Loss  account. 

PARTNERSHIP  SETTLEMENTS  BY  SINGLE  ENTRY. 

Hule.  All  debits  on  the  Ledger  are  effects,  and  all  credits  are  liabilities. 
Make  up  a  list  of  these,  and  if  the  former  exceed  the  latter,  then  the  difference 
is  gain,  and  must  be  credited  to  stock  or  the  partner's  accounts.  If  the  liabili- 
ties are  the  greatest  in  amount,  then  the  difference  is  loss,  and  stock  or  the 
partner's  accounts  must  be  debited  for  the  amount. 

Mc.  1.  M.  Bailey  keeps  his  books  by  Single  Entry,  and  his  accounts  stand 
as  follows :  Stock  acc't  is  Dr.  $100  ;  Cr.  $2000.  Jas.  Lynn's  acc't  is  Dr.  $750  ; 
Cr.  $50.  George  Miller's  acc't  is  Dr.  $500.  Wm.  McKown's  acc't  is  Cr.  $200. 
Cash  on  hand,  $1000.  Mdse.  on  hand,  $500.  Required  the  net  profit  to  date 
and  the  balance  due  as  capital.  Make  a  Ledger  specification  showing  the  ac- 
counts closed  and  reopened  by  Double  Entry. 

Solution.  After  opening  a  Mdse.  and  Cash  account,  the  accounts  on  M. 
Bailey's  Ledger  will  stand  thus — 

184 


COMMEKCIAL  CALCULATIONS. 

STOCK.  JAMES  LYNN.  GEO.  MILLER. 


Sunds.  -  100 


Sunds.  -  2000  Sunds.  -  750;  Sunds.  -  50  Sunds. 


WM.  McKOWN. 


Sunds. 


CASH. 


500 


MDSE. 


200     On  hand,  1000 


The  list  of  Effects  and  Liabilities  is  made 
up  from  the  foregoing  statement,  according 
to  the  rule,  and  should  be  entered  on  the 
D.  B.    Seep.  12. 

The  effects  exceed  the  liabilities  $600, 
which  amount  represents  a  gain  and  must 
be  carried  to  the  Cr.  of  Stock  acc't,  after 
which  we  proceed  to  close  the  accounts,  as 
follows — 


On  hand, 

500 

Effects. 

Liabili- 
ties. 

Stock      -    -    -    - 

100 
750 
500 

1000 
500 

2850 
2250 

600 

2000 
50 

2C0 
2250 

Jas.  Lynn,  -    -    - 
Geo.  Miller,     -    - 
Wm.  McKown,   - 

Cash, 

Mdse.- 

Total  Effects,  -    - 
"     Liabilities, 

"     Gain,     -    - 

STOCK. 


JAS.  LYNN. 


GEO.  MILLER. 


Sunds.    -    100 
Bal.  "A     ^500 


Sunds.    -  2000     Sunds.    -    750 
Net  gain,    600 


BaL    -    -  2500     Bal. 
WM.  McKOWN. 


750 

-"too 
CASH. 


Sunds.     -      50     Sunds.    -    500 


Balance. 


700     _  _ 

750     Bal.    -    -    500 


Balance,     500 


MDSE. 


Balance^     ^00 

■9~ 


Sunds.    -    200     On  hand,  1000 
Bal.    -    -    200     Bal     -    -  1000 
BALANCE  ACCT. 


Balance,    1000     On  hand,     500 
BaL    -    -    500 


Balance,     500 


J.  Lynn, 

G.  Miller,    500  Stock  n/o   2500 

Cash, -    -  1000 


Mdse. 


500 
2700 


This  closes  the  Single  Entry  Ledger  and  re- 
opens it  as  Double  Entry. 


2700 


Answer.  Net  profit,    -    - 
Net  capital,  -    - 


$  600 


185 


COMMERCIAL  CALCULATIONS. 

Ex.  2.  Henderson  Mclntyre  and  James  Dickson,  partners,  keep  their  books 
by  Single  Entry.  The  open  accounts  are  as  follows :  H.  Mclntyre's  % ,  Dr. 
$300;  Cr.  $2100.  James  Dickson's  %,  Dr.  $350;  Cr.  $2500.  Cash  on  hand, 
$1800.  Mdse.  on  hand,  $2600.  James  Bell  owes  on  acc't,  $400.  Required  the 
Ledger  specification  showing  the  transformation  from  Single  to  Double  Entry  ; 
also  the  gain  or  loss  and  the  amount  due  each  partner. 


Anmcr.  Net  gain,  $850.  P"«  ?.  Mclntyre,  $2235. 
(Due  J.  Dickson,      2575. 


ADJUSTMENT  AND  CLOSING  OF  DERANGED  DOUBLE  ENTRY  BOOKS. 

Mule,  (.^lose  all  accounts  representing  gain  or  loss  into  Profit  and  Loss. 
Make  up  a  complete  list  of  EiFects  and  Liabilities  :  all  debits  being  effects,  and 
all  credits  liabilities.  If  the  effects  exceed  the  liabilities  the  difference  is  a 
gain,  and  must  be  carried  to  the  Cr.  side  of  Profit  and  Loss.  If  the  liabilities 
are  the  largest  in  amount,  then  the  difference  is  a  loss  and  is  carried  to  the  Dr. 
side  of  Profit  and  Loss.  This  will  make  the  debits  and  credits  of  the  Ledger 
equal  in  amount.  Close  Profit  and  Loss  into  Stock  or  partner's  accounts  in  the 
regular  way. 

Ex.  1.  My  Ledger  being  out  of  balance  {i.  c,  debits  and  credits  unequal  in 
amount),  I  desire  to  adjust  the  same  and  close  all  the  accounts  now  open  to 
show  my  gain  or  loss,  and  reopen  my  Ledger  in  perfect  balance.  The  open 
accounts  are  as  follows :  Stock,  Dr.  $200 ;  Cr.  $3000.  Expense  %  Dr.  $150. 
Mdse.  on  hand,  $2500.  Cash  on  hand,  $500.  Required  the  specification 
showing  the  Ledger  closed  and  reopened  with  debits  and  credits  equal  in 
amount.     What  is  my  net  gain  and  what  is  the  amount  of  my  capital  ? 

An^er.  Net  gain,  $200.    Net  capital,  $3000. 

Ex.  2.  Wm.  A.  Miller  and  I.  N.  Stephenson,  partners  in  business,  each 
being  equally  interested  in  the  gain  or  loss,  kept  their  books  by  Double  Entry, 
and  fijid  that  the  debits  and  credits  on  the  Ledger  are  not  equal  in  amount. 
The  open  accounts  are  Wm.  A.  Miller,  Dr.  $750 ;  Cr.  $5000.  I.  N.  Stephenson, 
Dr.  $600 ;  Cr.  $4900.  Expense,  Dr.  $400.  Profit  and  Loss,  Dr.  $200 ;  Cr.  $50. 
Mortimer  L.  Johnson,  Dr.  $1150.  Mdse.  on  hand,  $4703.  Cash  on  hand,  $2800. 
Bills  Receivable  on  hand,  $500. 

Required  the  adjustment  of  the  Ledger,  according  to  the  rule  ;  The  specifi. 

186 


COMMERCIAL   CALCULATIONS. 

cation  to  sliovr  it  in  balance,  and  all  tlie  accounts  reopened  to  continue  business. 
What  is  the  net  gain  or  loss,  and  wbat  amount  is  due  each  partner  ? 

Answer.  Net  gain,  $600.  \  ^''^  ^^^  ^'  ^^1^*^^'    ^^^^0. 
""      '  ^         ( Due  I.  N.  Stephenson,  4G00. 

I^ote.  If  there  be  any  property  accounts  open,  first  credit  them  "  By  Bal- 
ance "  for  the  value  remaining  on  hand.  If  this  does  not  close  the  account, 
close  it  To,  or  By  Profit  and  Loss.  (See  Rule  2,  p.  41.)  Carry  the  gain  or  loss 
to  the  proper  side  of  the  Profit  and  Loss  account.  Bring  down  the  balance  on 
hand  and  include  it  in  your  list  of  Efiects.  Then  proceed  as  directed  in  the 
foregoing  rule. 

Ex.  3.  H.  B.  McCreary  and  C.  Baylies,  partners  in  business,  each  one-half 
interest.  The  books  being  out  of  balance,  they  desire  to  adjust  them,  and  at 
the  same  time  to  ascertain  their  profits.  The  open  accounts  are  as  follows : 
H.  B.  McCreary,  Dr.  $2600  ;  Cr.  $7100.  C.  Baylies,  Dr.  $2300  ;  Cr.  $7500.  Mdse.' 
acc't.  Dr.  $18000  ;  Cr.  $17000.  Mdse.  on  hand,  $6000.  Cash  acc't,  Dr.  $20000  ; 
Cr.  18000.  Cash  on  hand,  $2000.  Bills  Receivable  acc't,  Dr.  $3000  ;  Cr.  $2000. 
Bills  Receivable  on  hand,  $1000.  Jas.  P.  Barr,  Dr.  $200.  S.  McClurkan, 
Dr.  $600.  W.  N.  Riddle,  Cr.  $400.  Expense  %  Dr.  $550.  Profit  and  Loss, 
Dr.  $100  :  Cr.  400.  Required  a  specification  of  the  Ledger  showing  it  adjusted 
and  closed.  What  is  the  net  gain  or  loss,  and  what  is  the  amount  due  each 
partner  ? 

Arwmr.  Net  loss,  $300.  ]  ^»«  J?,  B.  McCreary,  $4350. 
i  Due  C.  Baylies,     -      5050. 


1&'7 


FINAL    EXAMINATION. 

1.  What  is  the  difference  between  Single  and  Double  Entry?    •[[  4,  p.  24 

Introductory  Remarks,  p.  22. 

2.  Wliat  books  are  generally  used  in  Single  Entry?    ^  2,  p.  5. 

3.  What  is  the  use  of  the  Cash  Book  ?    1[  2,  p.  5.     If  1,  p.  95. 

4.  What  is  the  use  of  the  Day  Book  and  Ledger  ?    ^  2,  p.  5. 

5.  Can  other  books  be  used  in  Single  Entry  ?    ^  3,  p.  G. 

6.  What  is  an  Opening  Entry  ?    t  2,  p.  2G.     Question  1,  p.  28. 

7.  How  is  the  Capital  entered  in  Single  Entry  books  when  you  begin  business  ? 

Question  1,  p.  6. 
9.  What  is  the  meaning  of  the  term  "  Stock  "  ?    1 1,  p.  2G. 
9.  When  two  or  more  parties  begin  business,  how  is  the  capital  entered  in 
Single  Entry  books  ?    Question  2,  p.  6. 
10.  Is  there  any  difference  in  the  rules  for  debiting  and  crediting  personal  ac- 
counts in  Single  and  Double  Entry  ?    Questions  3,  4,  5,  and  6,  pp.  6 
and  7.     Questions  3  and  4,  p.  25. 
11    How  is  the  gain  or  loss  ascertained  in  Single  Entry?    ^  1,  p.  12. 

12.  What  is  the  definition  of  the  terms  "  Effects  and  Liabilities  "  ?    If  1,  p.  12. 

13.  How  often  should  the  "  Cash  Book  "  be  balanced  in  business  ?    H  1,  p.  13. 

14.  How  do  you  ascertain  the  cash  on  hand  ?    ^  2,  p.  13. 

15.  How  does  Stock  acc't  close  after  the  gain  or  loss  is  carried  into  it  ?    Stock 

Account,  p.  14. 
IG.  Why  are  transfers  from  one  account  to  another  marked  "f "  or  "fol"? 
Question  1,  Hanna's  acc't,  p.  IG. 

17.  What  is  a  folio  ?    Page  20. 

18.  What  is  an  acceptance?    Page  19.     Form  7,  p.  135. 

19.  What  are  footing  lines  ?    Page  20. 

20.  Where  should  the  first  footing  line  be  drawn  ?    T  5,  p.  95. 

21.  Where  should  the  second  footing  line  be  drawn?    ^  5,  p.  95. 

22.  What  are  closing  lines  ?    Page  19. 

23.  What  is  a  Draft  ?    Page  19. 

24.  What  is  a  "  Due  Bill "  ?    Page  19. 

25.  What  is  the  definition  of  "  Endorse  "  ?    Page  19. 

2G.  What  is  the  fundamental  rule  in  Double  Entry?     Rule  1,  p.  25. 
27.  When  and  how  are  the  various  transactions  entered  on  the  Day  Book  ? 
H  1,  p.  22. 

188 


FINAL    EXAMINATION. 

28.  How  do  70U  correct  errors  on  this  book  ?    ^  1,  p.  23. 

29.  How  do  you  mark  Day  Book  entries  when  they  have  been  transferred  to 

the  Journal  ?    Note  4,  p.  28. 

80.  Can  the  Day  Book  be  dispensed  with  in  business  ?    ^  2,  p.  22. 

81.  What  is  the  Journal  used  for  ?    If  1,  p.  23. 

32.  What  is  meant  by  the  term  "posting " ?    ^7,  p.  38. 

83.  How  do  you  mark  Journal  entries  when  they  have  been  posted  to  the 
Ledger?    ^  8,  P- 39. 

34.  What  is  the  use  of  the  Ledger?    "^  1,  p.  24 

35.  What  accounts  are  kept  in  a  Double  Entry  Ledger?    *ff  4,  p.  24. 

36.  Repeat  the  rules  for  keeping  personal  accounts.    Rules  3,  4,  p.  25. 

87.  What  accounts  are  classed  as  personal?    ^  3,  p.  72. 

88.  Repeat  the  rules  for  keeping  property  accounts.    Rules  5,  6,  7,  p.  25. 

39.  What  accounts  are  classed  as  property  accounts  ?    X  4,  p.  72. 

40.  Repeat  the  rule  for  keeping  Profit  and  Loss  accounts.    Rule  8,  p.  25. 

41.  What  accounts  are  classed  as  Profit  and  Loss?    1"  5,  p.  72. 

42.  Where  should  the  abbreviations  "  Dr."  and  "  Cr."  be  written  in  the  Led- 

ger?   ^2,  p.  38. 

43.  What  is  to  be  done  previous  to  closing  the  Ledger  ?    ^  10,  p.  40. 

44.  What  will  the  proof  sheet  show  ?    ^  10,  p.  40.    Note,  p.  49. 

45.  How  must  an  error  in  the  proof  sheet  be  sought  for  ?    T[  1,  p.  74. 

46.  When  is  the  Ledger  closed?    ^  12,  p.  41. 

47.  For  what  purpose  is  it  closed  ?    ^  13,  p.  42. 

48.  Repeat  the  rules  for  closing  personal,  property,  and  Profit  and  Loss  ac- 

counts.   Rules  1,  2,  and  3,  p.  41. 

49.  When  is  Profit  and  Loss  closed?    ^  6,  Profit  and  Loss  Acc't,  p.  48. 

50.  How  does  it  close  ?    Rule  4,  p.  41. 

51.  When  is  Stock  account  closed  ?    *[[  3,  Stock  Account,  p.  43. 

52.  What  is  a  Bill  Payable?    Question  10,  p.  26. 

53.  How  do.you  keep  an  account  of  them  ?    Note  2,  p.  34. 

54.  How  does  Bills  Payable  account  close?    Rule  5,  p.  41. 

55.  What  do -the  Dr.  and  Cr.  sides  of  Cash  account  show?    ^^  1  and  2,  Cash 

Account,  p.  43. 

56.  How  does  it  close  ?    ^4,  Cash  Account,  p.  43. 

57.  What  do  the  Dr.  and  Cr.  sides  of  Mdse.  account  show  ?    ^\\  1  and  2,  Mdse. 

Account,  p.  44. 

58.  How  does  it  close  if  all  the  property  is  sold  ?    ^  4,  Mdse.  Acc't,  p.  44. 

59.  How  if  part  remain  on  hand?    Rule  2,  p.  41. 

189 


FINAL    EXAMINATION. 

GO.  What  do  the  Dr.  and  Cr.  sides  of  Bills  Receivable  account  show  ?    ^^  1 

and  2,  Bills  Receivable  Account,  p.  45. 
61.  How  does  it  close?    Bills  Receivable  Account,  ^  4,  p.  45. 
63.  What  is  the  rule  for  journalizing  drafts,  orders,  &c.  ?     Rule  9,  p.  64. 

63.  What  is  the  rule  for  keeping  an  account  of  consignments  received  ?    Rule 

10,  p.  64. 

64.  What  is  the  rule  for  keeping  an  account  of  goods  you  consign  to  others  for 

sale  on  your  account  ?    Rule  11,  p.  64. 

65.  How  are  errors  in  the  Journal  corrected?    ^  6,  p.  74. 

66.  When  a  Journal  entry  has  not  been  posted  at  the  proper  time,  what  is  to 

be  done  ?    1  3,  p.  74. 

67.  How  should  errors  in  the  Ledger  be  corrected  ?    "ff  2,  p.  74. 

68.  If  you  open  two  accounts  with  the  same  person,  what  is  to  be  done  ?    •[[4, 

p.  74. 

69.  If  an  entry  is  posted  twice,  how  do  you  correct  the  error  ?    H  5,  p.  74. 

70.  What  books  are  termed  "  Auxiliaries  "  ?    1  1,  p.  75. 

71.  When  auxiliaries  are  kept,  how  is  the  Day  Book  made  up  ?    T[  2,  p.  104. 

72.  Can  the  Day  Book  be  dispensed  with?    T[  1,  p.  104. 

73.  When  the  Day  Book  is  dispensed  with,  how  is  the  Journal  made  up? 

H  3,  p.  154. 

74.  What  is  the  rule  for  determining  the  date  of  maturity  of  a  note  when  the 

running  time  is  in  days  ?    Page  100. 

75.  When  the  running  time  is  in  months?    Page  101. 

76.  What  is  Expense  acc't  Dr.  for,  and  how  does  it  close  ?    Pages  127  and  164. 

77.  What  do  the  Dr.  and  Cr.  sides  of  Interest  account  show,  and  how  does  it 

close?    Pages  129  and  168. 

78.  How  can  the  contents  of  an  old  Ledger  be  transferred  to  a  new  one  ?    T[  5, 

p.  132. 

79.  Repeat  the  rule  for  calculating  interest  @  6%  for  months.     Rule  1,  p.  177. 

80.  Repeat  the  rule  for  calculating  interest  @  6%  for  days.     Rule^,  p.  177. 

81.  Repeat  the  rule  for  Simple  Equations.     Page  178. 

82.  Repeat  the  rule  for  Compound  Equations.    Page  179. 

83.  Repeat  the  rule  for  Storage  Equations.     Page  180. 

84.  Repeat  the  rule  for  dividing  partnership  gains  or  losses,  according  to  cap- 

ital invested.     Page  183. 

85.  Repeat  the  rule  for  adjusting  interest  on  partners'  capital.     Page  183. 

86.  Repeat  the  rule  for  adjusting  and  closing  deranged  Double  Entry  books. 

Page  186. 

190 


INDEX. 


PASS 

Abbreviations 19,  20,  21 

Auxiliary  Books,  remarks  on  use  of 75,  T6,  77,  78,  79 

Acceptance,  form  of Form  7,  p.  135 

Accounts  current,  form  of Form  11,  p,  137 

statement  of. Form  10,  p.  136 

personal,  rules  for  keeping Rule  3,  p.  55,  Rule  4,  p.  56,  t  3,  p.  72 

Profit  and  Loss,  rules  for  keeping Rule  8,  p.  62,  *f  5,  p.  72 

properly,  rules  for  keeping Rule  6,  p.  59,  Rule  7,  p.  61,  t  4.  P-  72 

classification  of 72,  73 

Addition,  method  of  proving. 177 

Balance  Account,  Double  Entry 49, 131, 172 

Single  Entry '. 18 

Balance  Sheet,  improved  form  of 174, 175 

Bill  Books,  forms  of 100,  101, 102,  152 

Bills  of  items,  form  of Form  8,  p.  136 

Correction  of  Errors 1 1,  p.  22,  «iif  1  to  6,  p.  74 

Cash  Account,  how  kept 43 

Cash  Book,  forms  of 13,  95,  96,  148 

Closing  the  Ledger,  rules  for 41 

specifications  for  exercises  in 182 

Commercial  Calculations 177 

Consignment  Accounts Rule  10,  p.  64 

Directions  to  Teachers pp.  5,  6,  7,  8,  27,  38,  40,  Note,  p.  09,  pp.  73, 120, 1 4,  p.  132 

Day  Book,  Double  Entry,  definition  of 22,  104 

opened  in  individual  business 28, 105 

Single  Entry,  definition  of t  S,  P-  5 

opened  in  individual  business 9 

Deranged  Double  Entry  Books,  how  to  rectify 186 

■  Detection  of  Errors,  directions  for » 74 

Endorsed  Note,  form  of Form  2,  p.  134 

Equations,  Simple,  Compound,  Storage. 178,  179,  180 

Exercises  for  final  examination 188, 189, 190 

in  making  out  business  forms 1S3, 173 

Expense  Account,  how  kept 127, 164 

Forms  for  Notes,  Drafts,  Orders,  &c 134  to  139 

Gain  and  Loss,  adjustment  of,  between  partners 18a  to  187 

how  ascertained  in  Sincle  Entry •  .12 

"  "  "DoubleEntry ....48 

191 


INDEX. 

PAGH 

Interest,  short  and  easy  method  of  computing 177 

adjustment  of,  on  partners'  accounts 183 

Inventory,  form  of 86 

Invoice  Book,  form  ov 79,80 

Index,  form  of,  for  Ledger 121 

Joint  Promissory  Note,  form  of ....  Form  4,  p.  134 

Journal,  definition  of 23 

checking  of 40 

entries,  remarks  on Notes  1,  2,  p.  66,  Note,  p.  68,  Note,  p.  69,  p.  73,  1  5,  p.  74 

six  column 155 

Journalizing  direct  from  Auxiliaries 1  3,  p.  154 

Ledger,  Double  Entry,  definition  of 24 

directions  for  opening,  posting,  and  closing 38,  39,  40,  41,  42, 120 

closing  in  individual  business 49, 132 

closing  in  partnership  business 182 

Single  Entry,  closing  of. 18 

reopening  by  Double  Entry t  2,  p.  18 

Merchandise  Account 114,  p.  42,  pp.  44, 124 

Mercantile  Terms 19,20,21 

Signs 21 

Manufacturers'  Books Set  IV,  p.  140 

Notes,  rules  for  computing  date  of  maturity 100, 101 

Opening  books,  specifications  and  exercises  in 53,  54, 180, 181 

Posting,  directions  for 1  6,  p.  38,  t  8,  p.  39 

Partnership,  rule  for  opening  books  in Kule  2,  p.  6 

settlements 183  to  187 

Proof  Sheet,  form  of 49 

Questions  for  Review p.  50,  t  4,  p.  l.':2, 1 1,  p.  173 

Rules  for  Journalizing 25,  26 

"  "  with  examples  for  practice 52  to  65 

*'    closing  the  Ledger 41 

"    settling  deranged  books 186 

"    computing  maturity  of  Notes,  Drafts,  &c 100, 101 

Retail  Business,  Books  for Set  I,  pp.  5,  6 

Sales  Book,  forms  of 87,88,  141,143 

Shipments,  rule  for Rule  11,  p.  64 

Trial  Balance,  form  of. . , 49 

Wholesale  Business,  books  for SetllT,  p.  51 

192 


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